Labor Market and Minimum Wage Essay Example | Topics and Well Written Essays - 500 words

Labor Market and Minimum Wage - Essay Examplens for their early days the disemployment effects are smaller, and in countries where labor market is regulated the negligible betroth standards have the least impact on disemployment (Neumark & Wascher, 2003).Labor demand in the present era is determined by the quick changes in technology which have placed more emphasis on increasing productivity by dependence on computerization and software rather than the human workforce. This might present an inference that the modal(a) labor requirement will decrease as the industries become increasingly technology driven. However this is not true as the change will only be in the quality and not the quantum of workforce, as human input will be needed to run much(prenominal) technologies.Any increase in minimum pursue usually affects the employment pattern of a country in a ostracize manner. The most affected are the younger workforce who usually work on much slight wages and therefore become unemployed. The usual compendium of the effects of fixing a minimum wage were usually done by using a time-series method where the impacts were studied over a limited period. However the approach misses on some aspects corresponding the relation of data to other contributing factors such as recession and other labor market policies. A cross sectional data analysis approach was therefore preferable to arrive at a more pertinent and accurate endpoint ((Neumark & Wascher, 2003). The authors analysis suggested that other factors contributed much more towards unemployment rather than the fixing of a higher minimum wage alone. Recession was cited as one of the prime factors affecting employment patterns.Any increase in the minimum wages makes employment seem more attractive than studies to those in late teens and thereby disturbs the equilibrium. However with the in style(p) trend of changes in the labor market from traditional industries like production and manufacturing to more so phisticated ones like the service industry and those involving technical knowhow like