MINIMUM WAGE

PRESENTED BY:-
SHOBHIT SHARMA

MOHD. TABRAIZ

NAVNEET

NITIN SHAMMA

PRIYANKA
 INTRODUCTION

vThis case study is all about the concept of the

minimum wage, the effects of it on the Labor
market.


vThis case study also tells about which section of

the people are mostly affected in the society
and the type of the industries which are
affected by this.


v This study will also tell what is the effect if the

Minimum Wage is above the Equilibrium Wage
and if it is below the Equilibrium Wage.



 DEFINITION

The minimum wage means that the lowest price for a

labor that any employer may pay to meet his minimum
needs.

It was first instituted by U.S Congress with a Fair Labor

Standards Act of 1938.

In 2005 the minimum wage according to the Fair labor

Standards Act was $5.15 per hour.
 A FREE LABOR MARKET
vLike all the markets the labor market also
depends on the supply and demand.


vThe supply of labor is determined by the

workers.


vThe demand of labor is determined by the

Firm.
A FREE LABOR MARKET
 A LABOR MARKET WITH MINIMUM
WAGE ABOVE THE equilibrium WAGE
 A LABOR MARKET WITH MINIMUM
WAGE BELOW THE equilibrium WAGE
IMPACT OF THE MINIMUM WAGE
vThe minimum wage has the greatest impact
on the market for teenage labor.
v
vThe Equilibrium wage of teenagers are low
because teenagers are among the least
skilled and least experienced members of a
labor force.
v

 SHOULD THE MINIMUM WAGE BE
ABOLISHED
v The minimum wage can v Adults who currently work
drive some small for minimum wage are
companies out of likely to loose jobs to
business. teenagers who will work
v Cost of living differences in for much less.
various areas of the v Workers need a minimum
country make a universal amount of income from
minimum wage is difficult their work to survive and
to set. pay the bills.

YES
 
NO
 COMPANIES AFFECTED BY THE
MINIMUM WAGE
vRetail Companies (eg:- T.J Maxx)
v
vFood and Beverage (eg:- McDonald’s,Coca-
Cola Enterprises)
v
vAccommodation and Hotels (eg:- Hilton
Hotels.
 COMPANIES NOT AFFECTED BY
MINIMUM WAGE
 Investment banks:- Because they employ only high
skilled labor thus compensate their employees much
higher than the minimum wage already.


 Consulting Services:- They are also on the same boat

as the investment banks.


 Other industries such as technology (eg:-

Microsoft (MSFT),Apple(AAPL))
 COMPANIES THAT FLOURISH FROM
A MINIMUM WAGE
vBig Companies
v
vHigh revenues
v
vEstablished in market
v
vFamous name, those with consumer loyalty
 COMPANIES THAT DONOT FLOURISH
FROM A MINIMUM WAGE
vSmall Companies (pubs,cafes etc.)
v
vLow revenue


vNew, Unknown in market

THANK YOU