Asked by carolette mckenzie on Jul 15, 2024
Verified
Teenage unemployment is higher than unemployment of people ages 20 and over. Explain why economists would attribute at least part of this difference to minimum-wage laws.
Minimum-Wage Laws
Regulations establishing the lowest hourly wage that employers can legally pay their workers, aimed at protecting low-income workers.
Teenage Unemployment
Refers to the unemployment rate among teenagers, indicating the proportion of the teenage workforce that is not currently employed but is actively seeking employment.
- Understand the function and impact of minimum wage legislation on employment levels and joblessness.
- Discuss the implications of employment trends and policies on youth and teenage unemployment.
Verified Answer
TH
Termaine HughesJul 20, 2024
Final Answer :
People who are experienced and educated are likely to find jobs where the equilibrium wage is above the minimum wage. In labor markets where the equilibrium wage is above the minimum wage, the minimum wage does not create unemployment. Since people ages 20 and over tend to have more experience and education than teenagers, the minimum wage matters less and so creates less unemployment.
Learning Objectives
- Understand the function and impact of minimum wage legislation on employment levels and joblessness.
- Discuss the implications of employment trends and policies on youth and teenage unemployment.