The Debate about the Minimum Wage is Contentious (Essay Sample)

The Debate about the Minimum Wage is Contentious
The debate about the minimum wage is contentious and has persisted for many decades. A minimum wage is the least amount of money that a worker should be compensated for their services or labor. Economists who vouch for the concept argue that it increases collective bargaining power, reduces poverty, bridges the gender wage gap, and improves living standards. Those against it posit that it has adverse effects on productivity and infringes on the autonomy of employers. Despite the varied arguments, abolishing minimum pay is beneficial to increasing productivity, reducing poverty and the unemployment rate.
Performance-based pay yields more employee returns as effort is directly proportional to compensation. It increases the productivity and efficiency of a firm guarantying quality goods and services (Ayaita & Klesczewski, 2020). Specifically, efficiency results from the ability of firms to retain satisfied employees who gain experience and eventually complete tasks with minimal effort and costs. Low turnover also saves a firm the funds used in recruiting and selecting replacements (ILO, 2016). Counter-arguments claim that the lack of a minimum wage may lead to employee oppression which is untrue in the age of civil rights movements. In essence, performed-based pay increases the productivity of employees and organizations.