Th3.5: Impact of Minimum Wage

Question 1

What will the impact of any minimum wage depend on?

Answer 1

where it is set and whether this is above or below the current wage

Question 2

What is the level of job losses dependent on?

Answer 2

the elasticity of supply and demand - if both are relatively elastic, there will be large job losses but if both are relatively inelastic, the losses will be small