Microeconomic DQS

Microeconomic DQS Name Institution Professor Date Microeconomic DQS Minimum wage laws, promoted by many governments, are meant to ensure that people receive a living wage. Minimum wage laws are also meant to ensure people are not living below the poverty line.The effects of the minimum wage laws can best be described by the effects these policies have on employment levels and wealth distribution among households. An increase in the minimum wage levels as both positive and negative implications. An increase in the minimum wage level increases the disposable income available for households. An increase in disposable income improves the living standards of these households CITATION Fre05 \l 1033 (Freeman & , 2005). However, an increase in the minimum wage level hurts most the people it is intended to pull out of poverty. When wages are set above the market equilibrium, surpluses exists. A surplus in the labor market is unemployment. When there is no minimum wage level, the market sets wages at levels whe...