4 pages/≈1100 words
Mathematics & Economics
Wealth Disparity and Minimum Wages Research Assignment (Annotated Bibliography Sample)
Annotated Bibliography on wealth disparity and minimum wages for a follow up argumentative essay.source..
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MINIMUM WAGE & WEALTH DISPARITY
Wealth disparity is a major economic issue of this time in America. America has more wealth disparity than any other developed country in the world CITATION Mak16 \l 1033 (Makridis, 2016). The relationship between minimum wages and wealth inequality lies in the claim that change in minimum wages affects the disparity. Some studies claim that increasing minimum wages will reduce poverty and eventually reduce the wealth inequality gap in the economy. However new studies claim that the decrease in minimum wages over time is not the major reason for the wealth disparity in the country CITATION Fer15 \l 1033 (Ferro, 2015). Further studies have to be undertaken to answer the question of whether increasing minimum wages will curb the wealth inequality issue. I claim that raising minimum wages is not the best solution to reduce wealth inequality as it has minimal impact on the disparity.
Autor, D. H., Manning, A., & Smith, C. L. (2016). The Contribution of the Minimum Wage to US Wage Inequality over Three Decades: A Reassessment. American Economic Journal: Applied Economics, 8(1), 58-99. doi:dx.doi.org/10.1257/app.20140073
This article reviews the impact of minimum wages on America’s income inequality using more data to reassess previous studies on the issue. The economists David Autor, Christopher Smith and Alan Manning offer a conclusive reevaluation using decades of extra data and a distinct statistical approach. The additional data and state-level variation of the minimum wages allowed them to find out that it has an impact on the disparity but significantly minor CITATION Aut16 \p 61 \n \y \t \l 1033 (p. 61). They found out that the impact caused by minimum wages on the wage disparity in the low-income category was 30 to 40 percent CITATION Aut16 \p 61 \n \y \t \l 1033 (p. 61): Unlike the previous claims that put the estimates as high as 90 percent. They conclude that although the minimum wages was definitely a contributing factor to the widening of the lower income inequality, it was not the prime factor (p. 88).
This article provides really important new estimates that reassess prior inaccurate statistics on the effects of minimum wages on the wealth inequality in America since 1980. It offers very detailed statistics in its research that are very clear and precise that will assist in supporting my claims.
Ferro, S. (2015, December 23). Why Raising The Minimum Wage Probably Won’t Fix Income Inequality. Retrieved June 17, 2017, from Huffingtonpost.com: /entry/minimum-wage inequality_us_567af9dae4b06fa6887fc8dc
In this article, Shane Ferro highlights the main reasons why increasing the minimum wage will likely not fix the income disparity. Ferro uses references from new research undertaken about the matter that proves that the decrease in minimum wages was not the major reason for the disparity for the past decades CITATION Fer15 \l 1033 (Ferro, 2015). She states that although raising minimum is not crucial to solving the inequality it’s still important to the poor workers as they deserve more. She claims that America needs alternative measures to deal with the income disparity between the 99 percent. The article further states that the cause of the inequality stems from other issues such as the returns the wealthy get. She concludes that minimum wages and wealth disparities are two different issues that require different solutions CITATION Fer15 \l 1033 (Ferro, 2015).
The article provides an insightful take on the issue of whether minimum wages affects wealth inequality, it also references supporting claims from new studies done.
Litwin, B. S. (2015). Determining the Effect of the Minimum Wage on Income Inequality. Gettysburg: Gettysburg College. Retrieved June 17, 2017, from cupola.gettysburg.edu
This article analyzes the efficacy of increasing minimum wages to fix the wealth inequality by studying data from countries that are part of the Organization for Economic Development and Cooperation CITATION Lit15 \p 1 \n \y \t \l 1033 (p. 1). Litwin gathers empirical data to develop an econometric model that analyzes the transnational effects of minimum wages on wealth disparity while considering the economic theories CITATION Lit15 \p 8 \n \y \t \l 1033 (p. 8). The model determines every possible relationship between the two variables to determine their effects on each other. Litwin states that increasing minimum wage impacts the income inequality by reordering wealth from minimum wage laborers and shareholders of the companies CITATION Lit15 \p 20 \n \y \t \l 1033 (p. 20). He concludes that raising minimum wages causes a drop to the income inequality momentarily then it begins to reverse because of its diminishing effect.
This article is crucial to this study because it gives a different take on the positive and significant effect on wealth disparity by raising minimum wages though momentarily. The diminishing effect of the wages effectiveness after some time will give me enough evidence to support that increasing minimum wages is not a solution to wealth disparity.
Makridis, C. (2016, February 05). Raising the Minimum Wage Won’t Reduce Inequality. Retrieved June 17, 2017, from New Republic: https://newrepublic.com/article/129286/raising-minimum-wage-wont-reduce-inequality
This article highlights and compares different studies done on whether minimum wages affects wealth inequality. Makridis explores different aspects that affect income inequality that is, directly and indirectly, related to minimum wages. Makridis offers a calculation scenario to determine minimum wages effects and concludes that it slightly affects the disparity. He comes to a conclusion ...
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