Impacts of Increasing Minimum Wage to $15-Annotated Bibliography

Impactsof Increasing Minimum Wage to $15-Annotated Bibliography

Impactsof Increasing Minimum Wage to $15-Annotated Bibliography

Bhorat,Haroon, Ravi Kanbur, and Benjamin Stanwix. &quotEstimating theImpact of Minimum Wages on Employment, Wages, and Non-wage Benefits:The Case of Agriculture in South Africa.&quot&nbspAmericanJournal of Agricultural Economics&nbsp96.5(2014): 1402-1419.

Thispaper assesses the impact that minimum wages has on labor markets.Notably, this study is rare in Africa. This study aims attempts toexplain the effect using the introduced minimum wage law within theAgriculture sector in South Africa. The study uses the Labor ForceSurvey data that is collected biannually between September 2000 andSeptember 2007. The results that are got from the study suggest thatthere is reduction in employment from minimum wages, no increase inthe wage rise and very drastic increase in non-wage compliance.

Thesource is quite useful as it focuses on the impact of minimum wageson employment, wages and non-wage. The findings of the study helpsin informing the effect that minimum wages have on three factors witha special attention to the labor market. The focus is on one of theleading developing countries in Africa. The results can then be usedto compare with those of United States (U.S) even though she isdeveloped.

Thesource is to be used to explain the impact of increase in minimumwages though with a focus on labor markets. Labor market essentiallyhave the individuals who get the minimum wages.

Lee,David, and Emmanuel Saez. &quotOptimal minimum wage policy incompetitive labor markets.&quot&nbspJournalof Public Economics&nbsp96.9(2012): 739-749.

Thispaper largely focuses on the theoretical analysis of policy onoptimal minimum wage within a perfectly competitive labor market.From the study, two results are got. First, it is evident that aminimum wage even though it results to unemployment is veryundesirable if the government is keen on having redistribution on lowwageworkers and when the unemployment is induced by minimum wage. Thesecond result notes that when the labor supply responses are alongthe extensive margin only, having both the minimum wage and thepositive tax rate on the low-skilled work is usually Paretoinefficient given that it is second best. The results obtained affirmthat minimum wage and subsidies are ideal and complement each other.

Throughthis source, the researcher is capable of understanding the impact ofimplementing the policy that target increase in minimum wage. Thesource is not bias and its efficacy level is evident as it uses datacollected and subsequent results to reach a conclusion.

Iam using this source to support my view even though it brings intopicture the policy issues. The source will help to informappropriately on the effects in regards to policy alreadyimplemented. It will back the points that indeed minimum wages haspositive effects and is desirable within an economy.

Lopresti,John W., and Kevin J. Mumford. &quotWho Benefits from a Minimum WageIncrease?.&quot&nbspILRReview&nbsp(2016):0019793916653595.

Thispaper mainly focuses on the manner in which a minimum wage increaseimpacts the wages of the low-wage employees. Through this paper,there is estimates the effect that the increase has on the low-wageworker’s compared to the wage that the worker would have in casethere was no increase in minimum wage. The method applied in thisstudy allows for the effect to depend on two things which include theinitial wage and size of the increase in the minimum wage.

Thissource is quite useful as it expounds on the beneficiary of theminimum wage increase. The source is ideal for the research beingconducted. The relevance is clear as the work focuses on the specificaudience that the policy targets.

Thissource is very useful to this study as it supports my position. Thesupport of my position is in regards to the audience that benefitsfrom the increase in minimum wage rate. The audience in this case isthe low income earners.

Pollin,Robert, and Jeannette Wicks-Lim. &quotA $15 US Minimum Wage: How theFast-Food Industry Could Adjust Without Shedding Jobs.&quot&nbspPoliticalEconomy Research Institute Working Paper Series&nbsp373(2015).

Inthis paper, the degree to which the U.S fast food business can adjustwhen there is an increase in the minimum wage is explored. Theincrease under focus is from $7.25 to $15 every hour. The impact isstudied in instances where the workforce is not reduced at all. Thestudy is on two steps over four years where the government increasesthe wage twice over the period, first to $10.50 and then to $15. Fromthis study, it is illustrated that fast food industry can increasethe wage bill without having to cut on employment levels.

Thebias in this source only results from the fact that focus is onspecific industry, that is, fast-food. The use of fast food industryas case example is however appropriate as most of the low-wage incomeearners are in this category.

Thissource is to support my view that the positives of the increaseoutweigh the negatives that exist. This source affirms thatincreasing minimum wage does not lead to unemployment at least withinthe fast food industry. Overall, it reaffirms my position.

Rosenberg.,Joyce. AP: As minimum wage marches toward $15, small businesses.Businessforafairminimumwage.(2013) Retrieved fromadapthttp://bigstory.ap.org/article/16d6f26c810a4170908d0cd71407c6a1/minimum-wage-marches-toward-15-small-businesses-adapt[Accessed 24/10/2016].

Thisstudy explains the as most of the businesses witness an increase inthe minimum wages, very few are able to adapt. The business underconcern is the Dog Haus that runs 20 franchise restaurants. Theeffect on the unemployment is evident as the company is seeking tohire more experienced workers as compared to having new staff whowill have to get the minimum wage but shoulder less responsibilitycompared to the experienced ones.

Thesource used is appropriate as it is current. The relevance of thesource is affirmed by the fact that it applies to the real casescenario of an existing business. The bias in this source onlyresults from the fact that focus is on specific industry, that is,fast food. The use of fast food industry as case example is howeverappropriate as most of the low-wage income earners are in thiscategory.

Thispaper therefore supports my view that an increase in minimum wage hasalso the negative effects to the economy.

ScheiberNoam. What a $15 Minimum Wage Would Mean for Your City. NewYork Times.(2015). Retrieved fromhttp://www.nytimes.com/2015/08/13/upshot/what-a-15-minimum-wage-would-mean-for-your-city.html?_r=1

Thispaper explains the meaning of the increase in minimum wage to $15 perhour. This paper affirms that increasing the minimum wage is likelyto risk in job losses. But then one critical point that is raised iswhether the job loss risk exceeds the benefits to workers.

Thesource is very useful as it is a current source. To support thearguments on the study, the source explores the effect in differentcities which indeed provides diversity in arguments. The source alsouses current data to support its position.

Thispaper is ideal for my study as it affirms my point that throughthe increase, there is redistribution towards low-wage workers. Withan increase in the minimum wages, there is a reduction in theturnover among the workers. The employer will experience increase jobtenure especially among the low-wage workers.