Effects of Increase on Minimum Wages

Effects of Increase on Minimum Wages
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Effects of Increase on Minimum Wages
The study by Neumark (2018) on the employment effects of minimum wages found that an increase in minimum wage discourages employers from using the meager salary. The minimum wage reduces employment rates among the employees with limited skills earning low wages. Secondly, the minimum wage does not serve its intended purpose of targeting poor and low-income families. The laws of minimum wage advocate for higher incomes for the low-wage employees and sideline low-income families who should earn a higher wage because they are in dire need of help to overcome poverty. The study fails to find evidence that minimum wages help the poor.
I agree with the study results that increasing the minimum wage does not improve employment rates. The initiative also fails to help the poor in society because employers tend to deviate from employing the low-skilled workers earning very-low wages. This indicates that increasing the income rates is not a solution to the unemployment rates. However, the government can enact the increase of minimum wage law...