What are the social issues associated with the minimum wage?
Table of Contents
Poverty and unemployment are two critical issues facing the United States today. Linked to both of these is the federal minimum wage law.
The minimum wage is often considered a social policy instrument that can help reduce both poverty and welfare receipt.
What country pays the highest minimum wage?
Luxembourg
Luxembourg. Luxembourg is a small, landlocked country bordering Belgium, Germany and France. Although it has under 1 million people, it has the highest minimum wage in the world. That figure stood at $13.79 in 2020 but has increased since.
What are some drawbacks to establishing a minimum wage rate?
Disadvantages of Minimum wages
- Unemployment.
- Firms may become uncompetitive.
- Cost-push inflation.
- Black market.
- Poorest don’t benefit.
- Limited impact on relative poverty.
- Related.
Does the US have a federal minimum wage?
What is the federal minimum wage? The federal minimum wage is $7.25 per hour. Though tipped workers and some farm and seasonal workers are paid less in many states, pay for the vast majority of hourly employees in the U.S. is at least $7.25 per hour.
Is the lowest legal wage that can be paid to most workers?
Under the Fair Labor Standards Act (FLSA), the federal minimum wage for covered nonexempt employees is $7.25 per hour effective July 24, 2009.
Which country has the lowest minimum wage 2021?
Minimum Wage by Country 2021
| Country | Hourly Minimum Wage | 2021 Population |
|---|---|---|
| United States | $7.25 | 332,915,073 |
| South Korea | $6.84 | 51,305,186 |
| Spain | $5.83 | 46,745,216 |
| Portugal | $5.76 | 10,167,925 |