Hat Would Be the Impact of Raising the Federal Minimum Wage on a Firm?

That increase charters by any reasons be broadly speaking suitable to the Good-Citizen model which are preferred by managers of opening Y who believes that high incentives and adequate salarys will boost employees working(a) devotion to a quick. In the case, we will study the affect of raising the minimum wage on a unwavering by the federal government after its consideration that a raise is necessary to compensate inflation annually calculate or by any reasons to maintain the minimum be of living or offer better afford canonical necessities where the employees are living. As a result, possibilities are the impacts can be both positive and negative for bottom lines and company values.
At first sight, employees are to be seen satisfactory with the new high wagess if the addition can at least cover the tote up at loss when the inflation formerly decreased their pockets. However, a 2010 study by Ball State Universitys Center for short letter and Economic Research found that recent minimum wage increases may have led to as many as 550,000 jobs being eliminated (Arvidson, 2010). It is resulted from the firms reaction to avoid attrition. In particular, the increase in the wage rate is likely to motivate firms to substitute outside from low-skilled workers toward more automation and additional high-skilled workers. (Brickley et al.



, 2009, p. 153)
As mentioned above, a firm with Good Citizen Model can experience minimal do as it may have considerately adjusted the compensation to update the basic consumption powers such as urine and electric utilities and food, for example. According to SurePayroll, out of the respondents of its surveys 91 percent are not affected by minimum wage laws because they pay all of their employees more than the minimum wage. (Dickler, 2007)
Moreover, the increase of minimum wage, although increasing labor costs, can significantly reduce the negative phenomena such as common absenteeism, high employee turnover; because the employees spirits are...If you desire to get a full essay, order it on our website: Ordercustompaper.com



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