The possible effect of the minimum wage on the quality of life is one of the most hotly debated topic in contemporary economics and in the political discourse generally. According to economic glossary, the term minimum wage is defined as a legally established price floor on the wage paid to labor. Before minimum wage was enforced employers would often take advantage of women and young workers by paying them at a lower rate than they actually deserved .Today employees are protected under the law to receive a certain lowest amount for their labor in low paying jobs.
It is no secret that increasing the minimum wage will lead to an increase in household’s purchasing power thus increasing their quality of life. There has been much research on how
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Simply stated, economists generally separate about the tangible impact of raising the minimum wage. The whole idea behind a minimum wage is to ensure that workers obtain an adequate income for their efforts. The relationship between the minimum wage and subjective well being is, they argue a type of policy motivated research that can provide useful information for policymakers and the wider public (Diener and Tov 2012). By introducing the minimum wage poverty level may be reduced. According to Dube, Nadiu and Reich (2007), the implementation of minimum wage increased the bottom amount of salary for workers which in turn increased their income level and thus resulting in more spending ability. When income increases workers will be able to spend more money for goods. An higher Minimum wage will increase the spending capability of workers which will increase the consumption level. As the lower income group of workers will have more money to spend on goods, they will spend more and increase the consumption in the country which will help the economy of the country (Bauer, Kluve, Schaffner and Schmidt, 2009). Although has seen above that minimum wage contributes to