Different Concepts Of Wages And The Wage Rates In An Economy (Essay Sample)

Minimum wages concepts Student’s name Course name Course number Instructor’s name Date Minimum wages concepts Introduction Minimum wage has this far been referred as the minimum hourly wage that is payable to an employee for the work that they do. At the moment, the Fair Labor Standard Act in the federal state is close to $8 for every hour worked with some states in the US raising above this value. This is important to be examined due to the fact that cross examination of the same could lead into understanding of the employment issues in any economy. If the minimum wage was to go high then the employers would effect that on the prices or the reduction of the hours worked within a business set up. The main reason for the introduction of minimum wages was to prevent employers from paying their employees very low salaries, something that is unethical in the society. This paper is to examine the contributions of various authors on the topic, highlighting the relevance of each contribution to an economy at large. Eyraud, F., Saget, C., & International Labour Office. (2005). The fundamentals of minimum wage fixing. Geneva: International Labour Office. This books portrays the concept of minimum wages to be both an economic and social policy tools which are not only flexible but also powerful. This has been done within this book by a vast and comprehensive database on the legality of it in various countries of the world. This is done by shedding light on the intricacies of this term through the provision of a thorough overview of various institutions in various parts of the world as well as their assumed best practices in dealing with employees. Again, in it is the outline of the main topics of debate on this topic of minimum wage and its effects on the economic and social variables like poverty, employment and wage inequality. Moreover, the book outlines the criteria used in the implementation process of the concept of minimum wages and the link of the same to the objectives of the countries. This particular edition looks at the relationship that exist between minimum wage and poverty. These two issues given priority in this book as stated above are rarely discussed together but in isolation. Herr, H., Kazandziska, M., & International Labour Office. (2011). Principles of minimum wage policy: Economics, institutions and recommendations. Geneva: ILO. This article brings minimum wage policy as an efficient mechanism that works against poverty as well as the erosion of households which are poor. This concept can be used to control the wage dispersion thus reducing the income inequality, a scenario that at times is felt at work place by the employees, especially when employers feel that they are not meeting their levels of profits that they have anticipated for. Herr and others thus presents in this article minimum wages can work to prevent the decline that normally happens on the nominal wages levels thus resulting into the deflationary tendencies. These tendencies are always triggered by the nominal wage and the unit-labor cost falls. It is clear from this article that if the deflationary traps catches up with a country, it is the minimum wage policy that can help to reduce this danger to an economy. It has therefore been presented in this piece of work the principles of the wage policy, taking into account the economic, institutional and political dimensions in the minimum wage determination. Meer, J., & West, J. (2015). Effects of the Minimum Wage on Employment Dynamics. doi:10.17848/wp15-233 This article presents a voluminous literature on the minimum wages and the impacts of the same on employment. Within the article, it has been argued that minimum wage impacts employment after a very long period of time by the changes that takes place in the growth and not a one-time drop in the relative employment that can be realized. At the same time, it has been shown that the specifications that have been commonly used do not capture these effects thus not mentioned in this particular article. There has been the use of state administrative employment data to illustrate the reduction of the job growth over a period of time that is caused by minimum wage rates. This finding is portrayed to have been significant in ensuring that wages are kept at a level that is best for both the employers and employees for better working condition hence productivity in the process. Hirsch, B. T., Kaufman, B. E., & Zelenska, T. (2015). Minimum Wage Channels of Adjustment. Industrial Relations: A Journal of Economy and Society, 54(2), 199- 239. doi:10.1111/irel.12091 The article presents an analysis of the wages in a sample of a restaurant that had employees within the state of Georgia Alabama between the years 2007 and 2009. In the records of payroll, a presentation of cost compliance has been depicted, together with multiple channels of adjustments that are useful in the determination of the proper wage level to an employee. Within this work has emerged the presentations of employments and hours of work being directly correlated. This is the bulk of what forms this work as it explores the effects of wages rates on the motivat...