Why might an increase in the minimum wage cause more unemployment among those with the least education, job experience and maturity?
What will be an ideal response?
The reason is that employers pay a wage that is no higher than the worker's value to them of an additional hour's work. Raising the minimum wage will force employers to let go of their least productive workers who are likely to be those with the least amount of education, job experience and maturity.
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What will arise when negative externalities are present in a market?
a) Government will regulate the externalities in the market. b) Private costs will be greater than social costs. c) The market will not be able to reach any equilibrium situation. d) Social costs will be greater than private costs.
The maximum money that can be created by the entire banking system is equal to a multiple of its excess reserves
a. True b. False Indicate whether the statement is true or false