What is the effect of minimum-wage laws on unemployment?
A) Minimum-wage laws are the major cause of natural unemployment.
B) Minimum-wage laws probably increase teenage unemployment.
C) Minimum-wage laws mainly affect skilled workers.
D) Minimum-wage laws have no impact on unemployment.

Question

Quizplus · Accepted Answer

Minimum-wage laws can create a disincentive for employers to hire workers whose productivity does not justify the higher wage, particularly for entry-level or low-skilled positions. As such, minimum-wage laws are often blamed for increasing teenage unemployment as younger workers with less experience and skills are more likely to fall into this category.

What Is the Effect of Minimum-Wage Laws on Unemployment