Since the past, humans have used to get necessities by traded goods and exchanged product, afterward, people learned to have the easier way to trade which is the intermediary in the exchange, money and have been using it until now. Normally, people have different ways to earn money, for instance, heritage, but the most common and be accepted is by working and earn the salary or wage. In each age gap and types of work earns the wage unequally, to avoid this circumstance, the government had to set the minimum wage to protect the labor from employer’s exploitation, and raise the employee’s life quality. The minimum wage has be defined as “the lowest wage per hour that a worker may be paid, as mandated by federal law. The minimum wage is a legally mandated price floor on hourly wages, below which non-exempt workers may not be offered or accept a job” (Minimum wage, n.d., Minimum wage: Federal and State Wage Rates, paragraph 1). Factors to set the minimum wage, compare the developed …show more content…
According to the study (Economics help, (n.d.) Factors that influence minimum wage rate), the factors to set and control minimum wage are the equilibrium wages where the floor price or the minimum wage set above the equilibrium point for the employer will have ability and willingness to hire, the overall country economics’ growth to avoid recession and unemployment cyclical’s nature, ages rate where the different age group has a different equilibrium wage rates, the younger the labors are, the less they had be paid, and geographical differences where the different country, different part had different wage rates. These may have more minority factors for government to consider in order to get the most appropriate minimum wage in each