Evaluating Minimum Wage Laws

Term Paper , 2020 , 26 Pages , Grade: 1,7

Business economics - Economic Policy

The present paper aims at evaluating minimum wage laws. In order to reflect the topic, two countries – Germany and the United Kingdom –, which have already introduced minimum wages, are chosen as examples. Furthermore, the paper examines minimum wages from the perspective of two different economic theories on government intervention by introducing the neoclassical and the Keynesian approach. It investigates the observed actual impact and effectiveness of minimum wage legislation against the presented market theories as well as against the objectives and expectations raised by the legislation. Finally, the student paper gives a recommendation whether the introduction of minimum wages is actually worthwhile or not.

The paper starts with a definition of the problem and introduces objectives as well as current relevance of the topic. Subsequently, the theoretical background is reflected. This includes the definition of the term minimum wage as well as presenting the neoclassical and the Keynesian economic theory. Chapter two finally ends with a short summary. Afterwards, the paper continues with Chapter three, which describes the minimum wage concepts of Germany and the United Kingdom.

Therefore, the implementation track records explain the history, structure and the scope of the different minimum wage concepts. The critical discussion in chapter four finally evaluates the observed actual impact and effectiveness of minimum wages against the economic theories. Furthermore, it reflects the expectations and objectives which are raised by the government. The paper concludes with a summary and an outlook.

Table of Contents

List of Figures

List of Abbreviations

1 Introduction
1.1 Problem definition
1.2 Objectives
1.3 Structure of the paper

2 Theoretical background
2.1 Definition of the term minimum wage
2.2 Minimum wage in the neoclassical macroeconomic theory
2.3 Minimum wage in the Keynesian macroeconomic theory
2.4 Summary

3 Minimum wage laws in Germany and the United Kingdom
3.1 Minimum wages in Germany
3.1.1 History
3.1.2 Structure
3.1.3 Coverage
3.2 Minimum wages in the United Kingdom
3.2.1 History
3.2.2 Structure
3.2.3 Coverage

4 Critical discussion

5 Summary and outlook

Literature

• College: SRH - Mobile University
• Grade: 1,7
• Author: André Müller (Author)
• Publication Year: 2020
• Pages: 26
• Catalog Number: V903343
• ISBN (eBook): 9783346222770
• ISBN (Book): 9783346222787
• Language: English
• Tags: Economics, Minimum wage, neoclassic, keynesianism