ASU The Economics of Minimun Wage Impact & Economic Growth Essay outline: Minimum wage refers to the legalized price under which the workers may sell their
ASU The Economics of Minimun Wage Impact & Economic Growth Essay outline: Minimum wage refers to the legalized price under which the workers may sell their labor. It signifies the lowest salary/ remuneration that the employer can pay an employee (Grimshaw, 2013). Any price that goes below the minimum wage scale is considered to be a violation of employee rights, which is punishable under the rule of law. Therefore, minimum wages seek to protect the workers against unduly low pay. It also ensures that there is equitable and just payment of salaries to all employees irrespective of their differences (Keyserling, n.d). Hence, minimum wages provide an average standard of living to the workers and promote their wellbeing. Minimum wage policy is advantageous as it reduces poverty in society. Every worker is accorded a basic salary while the unemployed are motivated towards joining the labor market. Besides, there is equity because of the distribution of income between the lowly and highly paid workers. Neumark & Wascher (2008), assert that minimum wage reduces employment opportunities causing unemployment. A shift in minimum wage rates impacts the company and its workers.
I want to find out how minimum wages affect the economy. How does it cause unemployment? How does it create employment? How do the increased minimum wages cause a higher demand and creation of jobs in the economy?
Grimshaw, D. (2013). Minimum Wages, Pay Equity, and Comparative Industrial Relations. Routledge.
Keyserling, L. H. (n.d.). The Role of Wages in a Great Society; Stressing Minimum-wage Gains to Help the Working Poor [by] Leon Keyserling.
Neumark, D., & Wascher, W. L. (2008). Minimum Wages. MIT Press.
Your paper outline/summary looks fine. In addition to the poverty alleviation/unemployment tradeoff, you might also wish to consider whether the current or planned minimum wage is sufficient to raise people out of poverty.
Also, since minimum wage varies across states, it provides a natural experiment on its effects. And you can discuss the research that has looked into those state differences.