Question

Identify some ways in which, over the long run, workers adjust after a minimum wage law is enacted.

a. Some young people decide to work instead of attending school full-time.
b. Workers leave the labor force due to too-low wages.
c. Workers at the bottom of the pay scale move up to better-paying jobs.
d. Some retired workers re-enter the labor force.

Answer 1

Answer:Answer:

The correct alternatives are A and D.

Step-by-step explanation:

With the minimum wage law, young people became more stimulated to seek employment, because even without specific knowledge or education level, jobs will have a guaranteed minimal gain. On the other hand, this also creates a more competitive atmosphere in the labor market where there are limited jobs and increased demand. The minimum wage does not guarantee a smooth retirement because it has low Social Security gain, causing low-income workers to re-enter the labor force as retirement earnings are average 44% of the workers' last salary.