Minimum wage facts for kids
The minimum wage is the smallest amount of money that a business must pay its workers. This amount can be different in various places. For example, in Canada, the minimum wage in Nunavut is $11.00 per hour. In Ontario, another part of Canada, it is $10.25 per hour.
Contents
What is Minimum Wage?
The minimum wage is a law that sets the lowest hourly pay an employer can offer. It means that no worker can be paid less than this amount. This rule helps to make sure that people who work get a fair amount of money for their time.
Why Do We Have Minimum Wage?
Governments set a minimum wage for several reasons. One main reason is to help workers earn enough money to live. It aims to reduce poverty and ensure that even the lowest-paying jobs provide a basic income. This helps people afford things like food, housing, and other needs.
Debates About Minimum Wage
People have different ideas about whether the minimum wage is a good thing. They also disagree on if it should be higher or lower.
Should Minimum Wage Be Higher?
Many people believe the minimum wage should be increased. They think that if workers earn more, they will have more money to spend. This could help their families and local businesses. It might also reduce the number of people living in poverty. Supporters often say it's fair for everyone to earn a "living wage." A living wage is enough money to cover basic costs of living.
What Are the Concerns About Raising Minimum Wage?
Other people worry about raising the minimum wage too much. They think it could cause problems for businesses. If companies have to pay more, they might:
- Hire fewer workers.
- Raise the prices of their products or services.
- Even close down if they cannot afford the higher costs.
Some also worry that higher wages could lead to inflation. This means that the cost of everything could go up. If prices rise, the extra money workers earn might not buy them more things.
How Minimum Wage Affects Jobs
Some people believe that a higher minimum wage can make it harder for some people to find jobs. They argue that businesses only hire workers whose skills are worth the pay. If the minimum wage goes up, a company might decide not to hire new people. They might also reduce the hours of current workers. This is because the company might not be able to afford the higher wages for everyone.
However, other studies suggest that a moderate increase in minimum wage might not always lead to job losses. Some research shows that in certain markets, a small increase can even help the economy. This is because workers have more money to spend, which helps businesses.
Other pages
Images for kids
-
Modern economics suggests that a moderate minimum wage may increase employment as labor markets are where one buyer has a lot of power, and workers do not have much power to negotiate.
-
A 2010 study compared areas in the U.S. with different minimum wages. It found no negative effects on jobs from a minimum wage increase. The purple areas show counties next to each other with different minimum wages.
-
People protesting and asking for a $15 per hour minimum wage in 2015.
.jpg)
See also
In Spanish: Salario mínimo para niños
