ipl-logo

Minimum Wage Case Study

1236 Words5 Pages

In the UK the private sector gets its largest number of employees from the retail sector with about 3 million workers. One third of employees in the retail sector are below 25 years and mostly part-time workers with a female majority. The retail sector accounts for about 539.000 outlets in total in the UK in 2014. When Retail sector is mentioned it should be noted that there are workers in the retail sector earning below minimum wage and others earning far beyond the floor level wage. The focus in this case is those earning below minimum wage.

This sector includes, customer service merchandising, warehouse and distribution in different areas like music, sport, fashion and online retailing. The retail sector contributes for about 11% of the …show more content…

This can be considered as a strategy used by the employers to reduce labor cost intensity and it seems to spread very fast around Britain and even Europe. This might bring us to the pre-conclusion that employees working in this supermarket see the introduction or increase in minimum wage as a curse for those who will lose their jobs. Most employees at Tesco earn far beyond the minimum wage which makes its increase not very advantageous for …show more content…

He said that the effects might not be seen or felt in the short term but in the long run the result could become a very big problem for the British economy.

On the other hand, it is also argued that the effects of minimum wage could be seen immediately after introduction of minimum wage for example Stigler, (1946). Another researcher said that “the ability to adjust labor demand in the short-run is very limited” and he also added that “it is the reason why in many minimum wage literature there are very few evidence on the effects on employment for example” Sorkin, (2013). This means that he also stand by Meer’s arguments.

Since the introduction of minimum wage especially in the retail sector there has been a fall not only in the number of workers in general but especially in the number of female workers. There have always been a larger percentage of women in the retail sector for example in 2000 they were about 63% of female workers and 47% of men employees and still the majority were non-British women. Below is a table representing the retail sector employment organization in the UK between 2000 and

Show More
Related

Loblaw Swot Analysis

297 Words | 2 Pages

The retail segment has its primary focus on food. Other components of the retail segment include associate – owned drugstore, in-store pharmacies, gas bars, apparels and other general merchandise. This particular

Read More

Pros And Cons Of Raising Minimun Wage

716 Words | 3 Pages

Rasing the minimun wage will lead to inflation, which will lead to more wage strikes, which will again lead to inflation. It is a never ending cycle, called hyperinflation. When companies have to pay workers higher wages, they make less of a profit. So in return most companies will raise the price of their products. Rasing the minimum wage sounds like a simple fix, but it is really just a bad idea.

Read More

Living On Minimum Wage Analysis

495 Words | 2 Pages

I watched a documentary called “Living on Minimum Wage” in the series Thirty Days. In the series Thirty Days, a man named Morgan Spurlock puts himself into certain situations to experience the problems some Americans face everyday. Mr. Spurlock decided to live off of minimum wage in the state of Ohio. The minimum wage in Ohio now is $8.10 per hour, but in 2005, when the episode was filmed, the minimum wage was $5.15 per hour. He started off with one week worth minimum wage ($300).

Read More

Should Minimum Wage Be Raised Essay

878 Words | 4 Pages

They said that they are not able to raise their prices to afford this and cover their expenses. Also, they state that they have reduce the amount of the minimum wage employees or reduce their work hours which will effect both the owners and employees negatively. Furthermore, raising the minimum wage will effect economic negatively. The economists concluded that as a result of the wage increase, "many prices will increase, including those that lower-income households commonly face; wages will raise for those in minimum wage jobs that remain employed; employment opportunities for those at the bottom of the skills ladder will be diminished and employment growth will

Read More

Minimum Wage: A Case Study

315 Words | 2 Pages

One of the elasticity conditions that make the statement about increasing the minimum wage resulting in less employment for employees who now earn less than the minimum wage is the price inelastic condition which states "...when demand is price inelastic, a given percentage change in price in a smaller percentage change in quantity demanded" (Rittenberg and Tregarthen, 2013, p. 116). The reason this elasticity condition rings true is because the total percentage change in the revenue of the minimum wage workers would still rise if there is a smaller percentage change of under minimum wage workers that were to be unemployed than the percentage of the wage increase. The second elasticity condition that would make the statement

Read More

Minimum Wage In The Workplace: Personal Narrative Analysis

73 Words | 1 Pages

When I entered the workforce, I did so in my early thirties and as a ritualist. I accepted a position that offered no advancement opportunities, did not offer minimum wage, but rather offered a server wage and tips. While this was a full-time job, the monetary compensation did not add to the family income on a consistent basis as the income was based solely on the number of patrons on any given

Read More

Minimum Wage Persuasive Speech

513 Words | 3 Pages

In the current economy, I don’t believe that having a minimum wage would be very beneficial to England and her people. In Appendix F which states the reasons for economic distress there is a statement, “Our own fellow subjects are the best customers for our manufactures; and when they are no longer able to purchase the same provisions and clothing, and to provide their houses with the same utensils and furniture to which they have been habituated, the manufacturers of these various articles will in vain look to foreign countries for customers to supply their place.” We must have our fellow subjects purchase from us or we will lose business and the economy will start in a downwards spiral. We will look to foreign countries and give them business all while our country and economy are starving and perishing. We, as fellow brothers and sisters of this town and country, need to support each other and depend on each other in this

Read More

Minimum Wage In America Essay

679 Words | 3 Pages

Americans have been struggling since the Great Depression to get ahead and stay above the poverty line. This article states that more than 28 million working people in America are making less than minimum wage. There are several contributing factors which lead to people being classified as poor. The cost of childcare, health insurance, college, and living have impacted families leaving them unable to get ahead in this country. Most people in the working poor category are high school educated, white, females.

Read More

Minimum Wage In America Essay

1015 Words | 5 Pages

America: The land of opportunity. What comes to mind when you hear “the American dream?” For most, saying “would you like fries with that?” while only being paid $7.25 per hour is probably not the first thing that comes to mind. The minimum wage was first implemented in 1938 by President Franklin Roosevelt. The purpose of putting minimum wage into effect was to stimulate the economy and keep working American citizens out of poverty.

Read More

Minimum Wage Essay

896 Words | 4 Pages

How will the government generate revenue (income tax, tariffs, excise tax)? Will the government set a minimum wage? What about a guaranteed income? Our government will set a minimum wage, the minimum wage will be a little higher than ours currently is but not too much because otherwise jobs that could support people might get replaced by robots. Instead of $7.25 we will raise the minimum wage to $8.25.

Read More

Minimum Wage Thesis

1347 Words | 6 Pages

Josh Ilyadzhanov English 10-2 Ms. Tunick Minimum Wage Essay Did you know that over forty five million Americans lived under the poverty lines just last year (Census bureau)? Minimum wage is the lowest wage permitted by law for any job in the United States of America, and was established in 1938 by the Fair Labor Standards Acts. Minimum wage started at an all time low $0.25 and over time has changed twenty two times. The current minimum wage in America is $7.25 per hour. Nowadays in America, poverty is at an all time high of 14.5%, which is atrocious for the economy.

Read More

Minimum Living Wage

371 Words | 2 Pages

According to the government policy paper, they announced that the minimum wage would rise from £6.70 to £7.20 in April 2016 and £9 by 2020 (GOV, 2015). This expected to benefit 6 million people in the UK, as well as economy wealth. Rising wages have an immediate effect in reduction of poverty as workers age above 25 will able to afford their basic needs and have a

Read More

Raising Minimum Wage Essay

1651 Words | 7 Pages

Burkhauser and Joseph J, Sabia, from the Contampary Economic Policy journal also used numerical data in their paper “The Effectiveness of Minimum-Wage Increases in Reducing Poverty: Past, Present and Future” Burkhauser and Sabia citied that previous literature determined that there was a very weak linear relationship between wage increases and employment (Burkhauser 263). The two economists provided an explanation stating that in many low income families no one works. Thus, when wages increase, the unemployed are not affected. As a nation politicians most work to correct the problem of unemployment, however raising minimum wage will aid workers who are presently working and thus should be acted

Read More

Essay On Increase In Minimum Wage

704 Words | 3 Pages

In the past three years, many politicians and labor unions have been pushing for an increase in minimum wage. Minimum wage is the lowest set wage by a law of a government body. An increase in minimum will benefit some people, and hurt others. An increase in minimum wage will cause benefit in the short run but will be very damaging to the economy in the long run. There should not be an increase in minimum wage because it is unhealthy to the economy in the long run and it will be the major cause of job loss, increase in inflation, competition, and the price level of goods and services.

Read More

E-Commerce In Mauritius

1049 Words | 5 Pages

1.0) Introduction 1.1) Background During the past decades, the retailing industry has gone through many important changes. Saturated markets, fierce competition, and the turbulent macro-economic environment have condemned retailers to reconsider their retail strategy. Actually there are four factors which have constantly been reshaping the world of business – technological advances such as the internet, the loss of geographic advantage resulting from globalization, the shake-up of the traditional industries as a result of de-regulation and the rising power of the modern and complex consumer. However one of the most important factors remains the evolution of the Internet.

Read More

More about Minimum Wage Case Study

Related Topics

Open Document