Also due to the fact minimum wage jobs usually have higher rates of turnover and vacancy the increase in minimum wage reduced both and other inefficiencies (Laabs 1998). Lastly the fourth point of redistribution of wages “it doesn’t last long because other factors kick in, particularly the inefficiency gains, and also because minimum wage is falling on real terms from the day it’s legislated” (Laabs 1998). Stemming from that quote the EPI did see high increases across the board for higher paid employees that were making above minimum wage. In the end this study finds that yes some of the four points were found to have some truth to them the overall affect is not as extreme some may think it is and that there are process in effect that handle increases in prices in the labor
Also due to the fact minimum wage jobs usually have higher rates of turnover and vacancy the increase in minimum wage reduced both and other inefficiencies (Laabs 1998). Lastly the fourth point of redistribution of wages “it doesn’t last long because other factors kick in, particularly the inefficiency gains, and also because minimum wage is falling on real terms from the day it’s legislated” (Laabs 1998). Stemming from that quote the EPI did see high increases across the board for higher paid employees that were making above minimum wage. In the end this study finds that yes some of the four points were found to have some truth to them the overall affect is not as extreme some may think it is and that there are process in effect that handle increases in prices in the labor