Identify some ways in which, over the long run, workers adjust after a minimum wage law is enacted.

a. Some young people decide to work instead of attending school full-time.

b. Workers leave the labor force due to too-low wages.

c. Workers at the bottom of the pay scale move up to better-paying jobs.

d. Some retired workers re-enter the labor force.

Question

Social Studies

Damari Roman

25 May, 12:59

Identify some ways in which, over the long run, workers adjust after a minimum wage law is enacted.

a. Some young people decide to work instead of attending school full-time.

b. Workers leave the labor force due to too-low wages.

c. Workers at the bottom of the pay scale move up to better-paying jobs.

d. Some retired workers re-enter the labor force.

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Answers (1)

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Howell · Answer 1

Answer:Answer:

The correct alternatives are A and D.

Explanation:

With the minimum wage law, young people became more stimulated to seek employment, because even without specific knowledge or education level, jobs will have a guaranteed minimal gain. On the other hand, this also creates a more competitive atmosphere in the labor market where there are limited jobs and increased demand. The minimum wage does not guarantee a smooth retirement because it has low Social Security gain, causing low-income workers to re-enter the labor force as retirement earnings are average 44% of the workers' last salary.