Minimum wage laws give rise to unemployment.

Question

Quizplus · Accepted Answer

When minimum wage laws are put into place, employers are required to pay their workers a certain amount, regardless of their skill level or the economic conditions of the market. This can lead to higher costs for businesses, which may then respond by reducing their workforce, cutting hours, or outsourcing work to other countries where labor is cheaper. As a result, some workers may lose their jobs or find it harder to find employment, especially if they are low-skilled or have limited work experience. Therefore, minimum wage laws can contribute to unemployment.

Minimum Wage Laws Give Rise to Unemployment