The disemployment effect of the minimum wage refers to the tendency of employers to:
A)hire experienced workers at higher wages.
B)hire fewer workers at higher wages.
C)pay lower wages to skilled workers.
D)hire more workers at a lower wage.

Question

Quizplus · Accepted Answer

The disemployment effect of the minimum wage refers to the phenomenon where employers hire fewer employees at a higher wage. This occurs because employers may not be able to afford to pay all of their employees the mandated minimum wage and may choose to either reduce their workforce or hire fewer employees to compensate for the increased wage expense.

The Disemployment Effect of the Minimum Wage Refers to the Tendency