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What Are the True Benefits of a National Minimum Wage: for the Employees and for the Employers
It is clear then that there are many differing views about whether or not the national minimum wage is a benefit to employees and employers, especially in terms of employment patterns and the re-distribution of wealth. However there is no shortage of research that supports each claim. The majority of the research is either based on a theoretical time-series approach or on a more contrasting and continual basis. After analysing the methods and results it appears that each type seems to support the differing views, with the former method often concluding that the NMW does have a negative effect on employment, where-as the latter approach often offers the contrasting view that the NMW doesn't have a negative affect on employment. So it appears that the methodology applied plays a great role in determining the results and overall view. I personally believe that the continual and contrasting approach (as used by Card and Krueger) has more substance and offers a greater and more comprehensive argument, due to the fact that a direct comparison has been made. Therefore I am of the opinion that the national minimum wage has no negative affects on employment, and so can only benefit employees in the longer-term.
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