What would happen if the minimum wage were abolished?

Answer: If minimum wage laws were repealed, the vast majority of U.S. workers would not have their wages impacted. If a firm perceives that certain employees are not productive enough to warrant the higher mandated wage, these employees may find themselves out of a job – or not hired in the first place.

Do minimum wage laws affect all workers?

It also applies to employees of federal, state or local government agencies, hospitals and schools, and it generally applies to domestic workers. The FLSA contains a number of exemptions from the minimum wage that may apply to some workers.

Why should minimum wage not be abolished?

The minimum wage is damaging not only because it induces employers to cut hours or let existing workers go. It’s also harmful because it dampens the incentives for, and flexibility of, entrepreneurs to develop new ways to employ people who are out of the job market.

What is the impact of minimum wage on employment?

A large body of evidence confirms that minimum wages reduce employment among low-wage, low-skill workers. Second, minimum wages do a bad job of targeting poor and low-income families. Minimum wage laws mandate high wages for low-wage workers rather than higher earnings for low-income families.

What is the impact of a minimum wage law on unskilled labor?

Evidence shows that minimum wages reduce employment and create unemployment among young unskilled workers. While some youths will benefit from higher current earnings, others will not find work, delaying labor market entry and reducing lifetime incomes.

Why should minimum wage decrease?

The Case for Lowering Minimum Wage If minimum wage is lowered, it allows businesses, especially small businesses, to survive during tough times. It would also not affect the poorer people of the country to a great extent. The majority of people making minimum wage do not come from poor families.

What would happen if there were no minimum wage quizlet?

If there were no minimum wage, then the wages paid to people would be lower. Teenagers may be able to find jobs more easily. In the 1700s unions were made up of skilled workers demanding better pay. In the 1800s, unions were threatened by immigrants because they were a source of labor.