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Employment Essay On Low Minimum Wage


Task: The objective of this assignment is to build students’ abilities to structure arguments based on evidence and structured reasoning, including identify consensus methods for identifying coherent group arguments.
As a group, you are expected to choose any one of the following debating topics.
• A sugar tax can fix obesity problems
• Artificial intelligence more harm than good
• Rich people and large corporations should pay more taxes
• Housewives and mothers should be paid for housework
• Men are better in sciences while women are better in the humanities
• Monetary incentives and benefits provide the highest level of motivation in the company
• A low minimum wage creates more employment
• Australia should allow more refugees to enter
• Global warming is not a crisis
• A carbon tax can fix climate change
• People should be legally required to get vaccines
• Alternative energy can effectively replace fossil fuels
You will then need to identify what would be a good response from both sides. That is, you need to simulate what would be good arrangements that the affirmative and the negative teams are likely to provide based on extensive research using a minimum of 6 peer-reviewed journal articles as references. You will need to organise your arguments in an argumentative essay. Then, you will need to put on a presentation/debate/show in class illustrating the entire arguments featuring both sides. Students are to be assigned into groups of two (2) or three (3) people. You will present the information that you developed and wrote in the essay. Do not simply cut and paste each persons’ contribution. The group needs to make sure that all the parts fit cohesively together and read as one document.
Be innovative, entertaining and insightful in your mode of delivery, here is a link that might inspire you as a team:
Clearly, you need to do a lot of research, formulate your arguments, and remember them by heart before you go on stage to put on an educational show. Essentially, the process most definitely tests your ability to look at a contentious issue, evaluate both sides of the argument and present them in a persuasive manner.


As noted herein employment essay, within the employment sector, the minimum wage refers to the minimum remuneration amount that the employers are required to pay off the wage earners regarding the work they perform during the given time period that cannot be reduced through the individual contract or collective agreement. Thus, the present employment essay discusses the topic regarding the low minimum wage creates more employment with arguments satisfying both the negative and affirmative aspects along with strong evidence.

Framed argument from the affirmative side
The low minimum wages create more employment as, within the competitive labour market, the employer with the low minimum wages will demand for more labour and could hire them with appropriate or the sanctioned amount of money which needs to be given to them. As opined by David Manning & Smith (2016) in regards to the scenario of employment essay, by having a stable or low minimum wage the firms get more opportunities for hiring more and more workers as they do have an abundant amount of money to provide the workers with the salary along with smoothly running their operations. The firm within the labour-intensive industries incurs benefit with low minimum wages and will observe proportionately more significant decreases within the wage bill.

Thus, this can support them to hire more and more employees to run their operation without getting burdened by the labour wages. Moreover, as evidenced by Dube, Lester & Reich (2016), the low minimum wages makes the firm become more and more competitive than the high minimum wages because the higher wages push up the cost that causes the firm to run out of the business as they might not have the ability to afford the wage costs. Thus, this becomes the major problem for the firms competing in the international market as the higher minimum wage makes them uncompetitive as compared to that of the low minimum wage and forces the firm in order to manufacture their products in countries with cheap labour rather than their own country. Thus, this causes a decline in the unemployment rates and thus, the firm tries to adopt the low minimum wage strategy.

As evidenced by Engbom & Moser (2018) within this employment essay, the low minimum wage rates help the firms to cause the cost-push inflation as because the firm faces an elevation in the costs that are likely to be passed upon to the customers and it is more likely if the wage differentials are well maintained. The low minimum wage helps in the decrease of individuals working in the black market, as the reputed firms incur the opportunities for hiring them with an appropriate amount of legal wage as no one is deprived of their wage rights and increases their employment. The low minimum wage facilitates the poor by providing them with higher benefits by granting them stable employment and increasing the income of the low wage groups. Thus, the low minimum wage benefits the second income earners, as if one of the individuals from each house gets the employment opportunity to work under the legal minimum wage then the person will be able to run the household with taking the family out of poverty level. Thus, as viewed by Harasztosi & Lindner (2019), there are certain advantages of low minimum wages that are discussed in the next section of employment essay,

  • It causes employment within the market of competition in international business.
  • It discourages the utilisation of black market through providing legal wage and employment to the each and every individuals 
  • It grants each of the firms in any particular country to afford the employee wages and hour more and more workers. 
  • This led to the lower prices as the firm's passes on the stable or decreased wage. 
  • The regional balances within the wages help in the increase of the effectiveness of the first and productivity in the global market.

Can you provide a framed argument from the negative side in regards to the case scenario of employment essay?
As argued by Lindner, Zipperer, Dube & Doruk (2019), the high minimum wages are also profound in declining the unemployment more than that of the lower minimum wages as tries to motivate the employees with higher income so that they live a wealthy lifestyle and also could come out of the poverty lines to medium class earners. Thus, there are certain advantages of the higher minimum wage that are as follows, 

  • Reduction of poverty: The increase or higher rates of the minimum wages helps in increasing the income of the lowest-paid which helps this worker to gain a stable income status along with the reduction in the relative poverty. 
  • Increased productivity: The theory of efficiency wage defines that the higher rates of minimum wages helps in increasing the incentive for the people in order to work harder and thus it helps in the increase of the labour productivity (Meer & West, 2016). Thus, it is clarified in the employment essay that if the companies have to provide higher wages to its labourers then they might put much more focus upon increasing the labour productivity that elevates the efficiency of the country's economy. 
  • Increases the incentive and job acceptance: With the higher minimum wages, there are big differences among the benefits levels and the income incurred from employment. The high minimum wages helps in the participation rates as the facilities and the advantages of work become much greater and much more worthwhile.
  • Increase in investment: The companies will have an increased incentive for investment along with the increase in labour productivity because the labour becomes more costly. In the long run, the high minimum wages helps in encouraging greater investment along with labour productivity. That is an economy which is based upon the high added value rather than just competing with the low minimum wages. 
  • Knock-on impact of the minimum wages: The employment essay examined the views of Raissian & Bullinger (2017), though only a count of 5%- 7% of the labourers are on the minimum wages, hence, these minimum wages have indirect effects upon the wages of those who are above the minimum wages. Thus, if the floor of the minimum wages rises, the firms might require increasing the wages for those who are above the minimum wage rates for maintaining the pay premium for the experienced and high skilled workers. 
  • Counterbalance the impacts of the monopsony workers: if the companies have the monopsony power, then they would drive the wages down by employing much fewer workers and thus, the low minimum wages makes it highly difficult for the labourers to work within the company. Thus, the high minimum wage could have a positive impact on the employment level. 

To conclude from the above information provided within this employment essay, it could be claimed that the low minimum wages would help in the creation of employment for the individual residing in the particular country. As it can be observed in the above context of employment essay that the minimum wages helps the companies to incur an appropriate amount of money to hire more and more workers which helps in increasing the employment level of the particular area and providing the worker with the legal wage they deserve. This helps in decreasing the poverty of the country as the population are benefited from employment in different industries and could work hard to take their families below the poverty line. Whereas, the high minimum wages decrease the strength of the companies as they might run out of money for hiring more and more employees as they have to an abundant amount of their experienced workers as the low rated workers are made to resign their jobs as they firm could not afford them.

David, H., Manning, A., & Smith, C. L. (2016). The contribution of the minimum wage to US wage inequality over three decades: a reassessment. American Economic Journal: Applied Economics, 8(1), 58-99.

Dube, A., Lester, T. W., & Reich, M. (2016). Minimum wage shocks, employment flows, and labor market frictions. Journal of Labor Economics, 34(3), 663-704.

Engbom, N., & Moser, C. (2018). Earnings inequality and the minimum wage: Evidence from Brazil. Federal Reserve Bank of Minneapolis-Opportunity and Inclusive Growth Institute Working Paper, 7, 18-50.

Harasztosi, P., & Lindner, A. (2019). Who Pays for the minimum Wage?. Employment essay American Economic Review, 109(8), 2693-2727.

Lindner, A., Zipperer, B., Dube, A., & Doruk, C. (2019). The Effect of Minimum Wages on Low Wage Jobs. The Quarterly Journal of Economics, 134(3), 1405-1454.

Meer, J., & West, J. (2016). Effects of the minimum wage on employment dynamics. Journal of Human Resources, 51(2), 500-522.

Raissian, K. M., & Bullinger, L. R. (2017). Money matters: does the minimum wage affect child maltreatment rates?. Children and youth services review, 72, 60-70.


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