Suppose That the Minimum Wage Covers All Sectors of the Economy;

question 100

Essay

Suppose that the minimum wage covers all sectors of the economy; however,for unionized laborers,the minimum wage is ineffective.That is,the union wage is already above the minimum wage.Analyze the impact of an increase in the minimum wage on both the unionized and non-unionized labor markets.(Assume that the higher minimum wage is still ineffective in the unionized sector and that union and nonunion labor are substitutable.)

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Definitions:

Four-drive Theory

A motivational theory proposing that human beings are driven by the desires to acquire, bond, learn, and defend.

Esteem

Relates to the self-respect, self-worth, or regard that an individual has for themselves; can also refer to the admiration one receives from others.

Four-drive Theory

A motivational theory positing that human behavior is driven by four basic needs: the drive to acquire, bond, comprehend, and defend.

Rewards

Rewards are benefits or recognition given to individuals or groups for their performance and achievements.