The effect of "living wage" laws is ____pay structures.____
A) more person-based
B) flatter more compressed
C) taller more compressed
D) more job-based

Question

Quizplus · Accepted Answer

"Living wage" laws typically increase the minimum wage, leading to a compression of pay structures. This means that there is less differentiation in pay between lower-level employees and higher-level employees, resulting in a flatter pay structure. This is because the increase in the minimum wage affects lower-paid employees more than higher-paid employees, which can lead to a compression of wages at the lower end of the pay scale. Therefore, option B, flatter and more compressed pay structures, is the best choice.

The Effect of "Living Wage" Laws Is ____Pay Structures