It is commonly believed that among the defenders of a minimum wage that the presence of the minimum wage regulations is premised on the fact that wages consider the relative bargaining ranking of individual laborers, which nearly does not exist in the low-income part of the labor market. Furthermore, the minimum wage is supposed to protect unrestrained competition in the labor market from deducting the labor standards in influenced industries or extending low standards to other sectors and industries. Moreover, depending on moral productivity theory, low workers are not all getting capitalized.
The potential significance of higher minimum wage transpires from the higher wage for influenced workers, some of whom are experiencing low- income origin. The hindrance is that the higher minimum wage may disappoint organizations from employing the low wage and low expertise workers that minimum income is considered to help. For instance, if the minimum wage minimizes the employment of low -skilled laborers, therefore the minimum incomes are not free lunch with which to assist low-income origins, Nevertheless, consider a trade-off of importance for some versus the value for others. The finding research is not unanimous, the United States, it is evident that minimum income minimizes the available job opportunities to low -skilled workers (Newmark, 2017)
Consistent minimum wage with reference of merit since its quantity to paying workers above the marginal productivity is the main cause of conflict between the moral and economical perspective. The Supreme court disapproved on the 21st century particularly on the segment that minimum wage would amount to unexplained redistribution from business to workers
Reference
David Newmark. (2017). Employment effects of minimum wages. IZA World of Labor. https://wol.iza.org/articles/employment-effects-of-minimum-wages/long
