Would you expect an increase in a statutory minimum wage to help or hurt the working poor?

Running head : Would you expect an increase in a minimum wage to help or hurt the working poor

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Increasing the minimum statutory wage has much far-reaching implications .Research indicate that this has a major impact on the business employment and labor market . Studies done on its impact show that the increase very probably leads to reduction of employment more so for the young and unskilled who typically get engaged in lower income jobs . So if the increase in minimum wage is not beneficial to

the general economy , is it helpful to the labor force it ought to benefit ? On a positive note or rather short term the increase will mean that the workers will have an increased disposable income therefore they will be in a position to meet their needs more comfortably than they did before the increase . On the other hand the increase is just minimal therefore it adds very little to the income of the workers in general . This method has been found to be an ineffective tool for poverty reduction due to such negative impacts which mainly affect the people it ought to benefit (Neumark , D and Wascher , W 1992

An increase in minimum wage forces the employers to respond in certain ways , studies indicate that when minimum wages increase the employers often tend to reduce the fringe benefits for the workers and at the same time reduce trainings for the employees . They embark on a cost cutting measures so as to...