Which of the following is most likely to occur after an increase in the minimum wage?
A)Low-skilled minority workers will face less discrimination in seeking employment.
B)The demand for skilled workers will fall.
C)Wages will rise in the sectors of the economy not covered by the law.
D)Employers will reduce the fringe benefits for workers who are covered by the law.

Question

Quizplus · Accepted Answer

An increase in the minimum wage can lead employers to reduce non-wage benefits (such as health insurance, paid leave, etc.) to offset the higher wage costs. This is a common response as employers seek to manage their total compensation costs.

Which of the Following Is Most Likely to Occur After