Question

According to the opponents of the minimum wage, what happens to job opportunities in low-paying jobs when the minimum wage goes up?

1) Job opportunities become more interesting.
2) The jobs available become easier to get.
3) The quantity of labor demanded goes up.
4) The quantity of labor demanded goes down.

Answer 1

Opponents of the minimum wage argue that when the minimum wage increases, the quantity of labor demanded goes down. Economists have found that a 10% increase in the minimum wage leads to a decrease in hiring for low-skilled workers by 1 to 2%. This decrease in job opportunities can limit economic mobility for lower-skilled workers.

Step-by-step explanation:

According to opponents of the minimum wage, when the minimum wage goes up, the quantity of labor demanded goes down. Economists have found that a 10% increase in the minimum wage typically leads to a decrease in hiring for low-skilled workers by 1 to 2%. Walter Williams and Thomas Sowell, two economists who focus on the intersections of race and economics, argue that higher minimum wages increase employment barriers, limiting economic mobility for lower-skilled workers.