Minimum Wages in Competitive Labor Markets

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7 жыл бұрын

We've all had minimum wage jobs, therefore we've all wished there was a higher minimum wage! In this lesson we'll analyze the impact that a minimum wage has on both a competitive labor market and on an individual firm hiring workers in that market.
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Пікірлер: 17

@oliviaharris4255 4 жыл бұрын

This video is absolutely amazing!!! Really improved my understanding on this topic.

@riullysdantas4413 4 жыл бұрын

Very easy to follow when there are graphs, thank you!

@RaqibZaman 7 жыл бұрын

What software are you using to teach the lessons? I could use something like that for biology. Nice video, by the way.

@cye8281 6 ай бұрын

Jocab Clifford failed me this time as we need to buy his review packet , your videos are great❤

@tonymworia247 3 жыл бұрын

Loved the intro track

@Caesar2k1 3 жыл бұрын

I think this oversimplifies the effects of minimum wage. All, or at least most, workers are consumers. If workers have more money to spend, this can potentially offset the increase in costs for businesses by allowing these businesses to make more money on increased sales(although, that depends on various markets). Also, it ignores the psychology of wages too. Workers tend to work more efficiently if they are paid higher wages, especially if they feel that THEY are receiving a fair wage(not a fair wage as determined by the employer). Since workers who are more productive as a result of higher wages, they will need to work less(this is more useful for industrial or industrial-like jobs) and they will treat customers better(this is useful for retail and other low-skill service jobs). As a result, they will either need to work fewer hours or produce more in sales. Another thing would be is there is usually lower turnover and higher employee retention when it comes to higher levels of compensation/wages. As a result, there would be lower turnover costs too

@titanmoirangthem234 3 жыл бұрын

Demand of goods will not increase on increasing minimum wages. Let's say 1000 workers work in a company and the wage of each worker is 1500$ per month. The total variable cost of the company will be 1,500,000$ on a monthly basis. After increasing minimum wages to 3000$ , the company cannot afford to employ 1000 workers and therefore it will employ let's say only 500 employees which makes the total variable cost the same in the two cases. The workers of this company have in aggregate 1,500,000$ to spend each month in both the cases. Thus, the demand curve is totally unaffected. Demand curve may only increase if the 500 fired employees can find jobs in other sectors. Overall, the rise in minimum wages will permanently shift the marginal cost curve leftwards which will result in less of supply. This combined with constant demand rate( if the 500 fired employees do not find jobs) will result in rise in prices and ultimately inflation.

@ugyennima9325 3 жыл бұрын

Can you show how a Perfectly Competitive Labor Market after the introduction of minimum wage rate can go back to Equilibrium, or is it even possible.

@whosyodaddy21 4 жыл бұрын

Also, wouldn’t the quality of skill set required be increased too? Like your expectations for your employees? People with lesser skill sets would then be displaced and have to change industries... or a on positive note, would have to enhance their skill set to become more desired

@sidraramzan1271 3 жыл бұрын

Can you make vedio short run and long run on hiring Labor

@thandozulu9417 2 жыл бұрын

well explained, thank you very much.

@kaikewooziee 6 жыл бұрын

You can't possibly type that fast...

@kiarapillay5908 4 жыл бұрын

What happens when minimum wage is lower than the equilibrium?

@marcus5185 4 жыл бұрын

it has no effect because market already pays a higher wage

@kiarapillay5908 4 жыл бұрын

@@marcus5185 thank you

@icemike1 3 жыл бұрын

He said less profitable

@jamesmadison3580 4 жыл бұрын

A $15 hr / $30K yr min wage helps everyone. Walmart Target Home Depot Sears employees will no longer use $3.4 Billion a year in Food Stamps MediCaid & Section8 housing. CA WA OR are already see a drop in usage of public services from the min wage increase. Pizza Hut clears over $18 Billion a year to pay all their workers $15 hr they then clear $17.6 Billion a year Pizza Hut pays AU$22 Hr/ US$16.29 Hr min wage in Australia & New Zealand and still clears $4 Billion+ a year McDonalds Dominos KFC Burger King Starbucks ALL pay the AU$22 Hr/ US$16.29 min wage in Australia & New Zealand and ALL clear $8+ Billion annually. McDonald's in Denmark pays US$19 Hr / €16.25 Hr .. or US$11 Hr / €9.41 Hr if your are 17 or younger People who vote republican you could have looked up this info for yourself. Stop voting for the “wages are too high republicans” To Pay $15 an hour Walmart only has to raise ALL prices by 1 cents kzfaq.info/get/bejne/rKeTlMh90t_Gc40.html