ail for all kinds of market, including the market of labor. Thus, an upsurge in the minimum wage will promote the number of people interested to join the labor force. The new labor emerge from many different groups. Some of them are people known as discouraged workers, labors who are no longer eager to find any job. There will be no negative effect from this new force. There are also strong correlation between female employment and wage level. More mothers will leave their children as a result of higher minimum wage. On one hand, it means a higher family income. On the other hand, it can create some psychogical effect on the children.Another groups that possibly enter the job market is the teenage worker. Statistical data shows a strong trend that this is the group that most influenced by the minimum wage level. Typical study finds that a 10 percent increase in the minimum wage depresses teenage employment between 1 and 3 percent (Mankiw 127). High minimum wage encourages more teens to work on part time or full time job. This action require these teens worker to reduce their studdying time. In some cases, it is done by dropping out from school. In long term, high drop out rate among highschool or college students due to enchanced wage is disadvantegeous to the society as a whole.On the demand side, a minimum wage means higher cost to hire new worker. A minimum wage raise leads to a drop in the employment opportuinities. Business are encouraged to reduce their labor force size and apply more machinary that require less worker. This phenomenon, together with an increase in labor force supply side, take the whole society to a high unemployment level. Although economists frequently have opposing arguments, they speak in unisound that minimum wage produce unemployment. There are a lot of studies, especially those funded by the Department of Labor, that conclude that a raise in minimum wage does not cost jobs. Those studies are reasonable in ...
