This is a commonly accepted view by most economic experts. According to a 1978 article in American Economic Review, 90% of the economists surveyed agreed that the minimum wage increases unemployment among low-skilled workers (Kearl, J
Role of Government Minimum Wage Laws Artificially adjusting wages above market rates set by the supply and demand of labor increases unemployment. This happens because of several factors (Kibbe)
Further, minimum wage laws are less effective at reducing social exclusion and are more damaging to businesses than other alternatives such as training programs and the Earned Income Tax Credit (Minimu wage, Wikipedia). Anti-trust - Microsoft Our economy consists of many new types of industries such as computer software, Internet-based businesses, communications services and equipment and biotechnology (Stenborg)
If firms are less competitive, they will ultimately be forced to reduce the size of their workforces, so the minimum wage will cost the economy jobs (Saxton, 1996). Some would argue that the jobs lost were not good jobs anyway (Landsburg, 2004), but this argument disguises the fact that job losses are a symptom of a decline in the nation's economic performance
From the company's perspective, these cost increases also make the firm less competitive against foreign competition not subject to the same cost increases. If firms are less competitive, they will ultimately be forced to reduce the size of their workforces, so the minimum wage will cost the economy jobs (Saxton, 1996)
Reducing expat costs can be done by attacking the largest sources of expat costs. These most significant costs are assignment allowances, which can be up to 35% of costs, property costs (35%) and relocation costs (15%) (Friedman, 2010)
Therefore, a human resources department committed to reducing expat costs should consider focusing expat recruitment efforts on employees without families. Another factor affecting early returns is local language skills (Selmer, 1995)
This pitfall can be alleviated with better goal-setting on the part of the management. When all workers are treated as average by the compensation system, they will only strive for average results (Zenger, 1992)
In order to control these costs, employers must first understand the nature of these costs. The most obvious solutions -- to not offer health care -- is a non-starter, since almost every company over 200 people offers health care benefits (Christianson & Trude, 2003)
Employers believe that one of the keys to containing health care costs is in to change employee health care usage patterns -- in other words to reduce demand created by employees for health care that is paid for by the employers. One of the major obstacles to changing usage patterns is that employees typically feel that they are "effective healthcare consumers" and that addressing the issue of rising health care costs is the responsibility of the company (Davis, 2003)
HSAa and HRAs can be offered in conjunction with a modified insurance plan that covers more extreme circumstances. Such a plan can be low-premium and high-deductible in nature (Zirkelbach, 2007)
A high level of seniority in a workforce can be expected to have a number of positive outcomes. Workforces with a long average tenure tend to have higher productivity, better congruence with organizational values and culture, a shorter learning curve, fewer accidents and higher overall quality (Auer, Berg & Coulibaly, 2005)
Under such a scenario, compensation-based pay's tenure incentives are ineffective with the best workers and only truly effective with the least productive and least desirable members of the workforce. Also, seniority-based pay has the macroeconomic effect of reducing flexibility in times of change in an industry (Bejaoui & Montmarquette, 2008)
Another response is to utilize only numeric measures, effectively eliminating subjectivity and allowing all employees to know ahead of time on what they will be measured. Another key success factor in the development of a merit-based system is that the employee should be involved (Cohen & Murnane, 1985)
Such a system can especially be perceived as unfair by older employees, who grew up in an era when seniority-based systems were the norm and may even have started their career under such a system and see the present day as their payoff for years of working hard for little pay when they were younger. There is also a greater risk of perceived unfairness in merit-based systems when a significant component of the employees' performance evaluation is based on qualitative outputs, which tend to be evaluated at the discretion of the manager (Heneman & Werner, 2005)
A prime example of a poorly-designed merit-based pay system comes in discussions of executive pay. Executive compensation is a relevant way to articulate some of the issues associated with merit pay because so-called "exempt" employees are the most common recipients of merit-based pay (Petty, 2002)
S., state and federal minimum wages have not reduced poverty (Gallaway and Vedder)
0% of the overall working population. Nonetheless, labor unions fight passionately for a higher minimum wage (Sherk)
In arguing against the minimum wage in a Joint Economic Committee Report, Reed Garfield (1996) noted that the minimum wage was created to generate certain social benefits and that for the most part those benefits have failed to materialize. Other authors have noted that the minimum wage is politically popular, lending considerable political impetus for its existence (Dimock, 2006)
On the one hand, there are those who argue that the minimum wage fosters a better distribution of resources in the economy, so as to improve the population's general welfare by helping reduce poverty, increase productivity, and stimulate economic growth. On the other hand, we hear holders of the distortionist view argue that the minimum wage produces an inefficient allocation of labor and encourages rent seeking behaviors, thus negatively affecting investments and contributing to a reduction in the rate of economic growth" (Carneiro, Gill and De Barros, 2006)