2. Definition
Minimum wage(n. ) is the lowest hourly, daily or monthly
remuneration that employers may legally pay to workers
Working poor(n. ) are unskilled workers
3. The relationship
Between minimum wage and working poor
Increase cost for firm
Minimum wage will be raised
Business will have to promote
the competition in market
Reduce cost in production
Cut down human source
The number of unemployment will increase
4. Example
Today in US the minimum wage is $7.5 per hours
President Obama called on Congress to raise the minimum
wage to $9 per hour
Wells Fargo and Gallup ‘s survey:
28% of small-business owners said they would reduce
their current workforce
in response to a minimum wage increase to $9 per hour
A Duke University/CFO Magazine survey:
If the minimum wage raise to $10 per hours
Companies would reduce jobs
5. • Raising minimum wage increasing of living for
workers.
• Raising minimum wage motivates and
encourages employee to work harder.
• Raising minimum wage decreases the cost of
government social welfare program.
• Reducing distance between poor and rich
people.
Supporting Ideas
6. • Unemployment
• Raising minimum wage is inefficient way to
help working poor
• Teenagers drop out of school
• Prevent some unskilled workers from getting
the job training they need
• Few minimum wage earners actually come
from poor households
Opposing Ideas
9. Inefficient way to help working poor
7
1.7
0
1
2
3
4
5
6
7
8
Cost of tranfering $1 to poor families (dollars)
Minimum wage EITC
10. Vast majority of minimum-wage
workers do not live in poverty
Teenager and student
under 25
49%
Workers aged 25 and
up
51%
PROPORTION OF EMPLOYEES WORKING WITH MINIMUM WAGE
11. • Exporting Labor
• The government subsidizes the incomes of
low-wage workers
• Supplement the fiscal stimulus with a
commitment
• Earning income tax credit for the working poor
Solutions
13. • Bernatek, B. T., 2014. TRAINING AND DEVELOPMENT. [Online] Available at:
http://www.referenceforbusiness.com/encyclopedia/Thir-Val/Training-and-Development.html
[Accessed 31 May 2014].
• Coats, R. M., unknown. Minimum-wage increases and high school dropout rates. [Online] Available
at: http://www.nicholls.edu/mcoats/newopeds/minimumwagedropouts.htm [Accessed 31 May
2014]. Lammam, C., 2013. Why Raising the Minimum Wage Won't Help Anyone. [Online] Available
at: http://www.huffingtonpost.ca/charles-lammam/ontario-minimum-wage-hike_b_3836275.html
[Accessed 31 May 2014].
• MANKIW, G., 2006. The Minimum Wage Debate. [Online] Available at:
http://gregmankiw.blogspot.com/2006/04/minimum-wage-debate.html [Accessed 31 May 2014].
Sherk, J., 2006. Raising the Minimum Wage Hurts Vulnerable Workers' Job Prospects Without
Reducing Poverty. [Online] Available at:
http://www.heritage.org/research/reports/2006/07/raising-the-minimum-wage-hurts-vulnerable-
workers-job-prospects-without-reducing-poverty [Accessed 31 May 2014].
• unknown, unknown. Disadvantages of Minimum wages. [Online] Available at:
http://www.economicshelp.org/labour-markets/disadvantages-minimum-wages/ [Accessed 31
May 2014]. Wilson, M., 2012. The Negative Effects of Minimum Wage Laws. [Online] Available at:
http://www.downsizinggovernment.org/labor/negative-effects-minimum-wage-laws [Accessed 31
May 2014].
• Eric Morath(2013) Minimum-Wage Increase Could Slow Future Hiring, Employment Survey Shows.
[Internet] Available from: http://blogs.wsj.com/economics/2014/03/19/minimum-wage-increase-
could-slow-future-hiring-employment-survey-shows/ Accessed: 29.5.2014
• Price controls.[Internet] available from: http://www2.yk.psu.edu/~dxl31/econ14/lecture8.html
Accessed: 1.6.2014
References
14. Nguyễn Minh Quang
Nguyễn Trường Anh
Nguyễn Vũ Kim Trang
Ngô Thiện Dũng
Phạm Thị Linh Tâm
Trần Trung Kiên
Bùi Thị Thu Huyền
Thanks for your attention
