An effective minimum wage law will probably have an unemployment effect on
the lowest skilled and lowest paid workers.

Question

An effective minimum wage law will probably have an unemployment effect on
 the lowest skilled and lowest paid workers.

Quizplus · Accepted Answer

An effective minimum wage law sets the wage above the equilibrium market rate, which can lead to a surplus of labor (more people willing to work at this higher wage than there are jobs available), particularly affecting the lowest skilled and lowest paid workers as employers seek more qualified individuals for these now higher-paid positions.

An Effective Minimum Wage Law Will Probably Have an Unemployment