Minimum wage laws are usually defended as a way to reduce poverty among low skilled workers.

Minimum wage laws are usually defended as a way to reduce poverty among low skilled workers. Do you think it reduce poverty among all low skilled workers? Might it increase poverty for some workers? Explain.

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Expert Solution

Minimum wage is above the market equilibrium wage. This leads to a suprlus in workers and shortage of jobs.
So it does not reduce poverty among all low skilled workers as many are unable to find jobs at the minimum wage. It would increase poverty among those workers who were earlier able ot find employment at the market equilbrium but are unable to find unemployment and the minmum wage

Rahul Sunny answered 1 year ago

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