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When a Minimum-Wage Law Forces the Wage to Remain Above

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When a minimum-wage law forces the wage to remain above the level that balances supply and demand, there are more workers willing to work than there are jobs, so some workers are unemployed.


Definitions:

Productivity Per Worker

A measure of output produced per unit of labor, often used to gauge the efficiency and performance of an economy's workforce.

Industrialized Nations

Countries that are characterized by a high level of industrialization, advanced technological infrastructure, and higher living standards.

Labor Productivity

The measure of the amount of goods and services produced by one hour of labor.

Worker Hour

A measure of labor that represents one hour of work performed by an employee or a group of employees.

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