Question

Explain how a natural experiment would be useful in estimating the employment effects of an increase in the minimum wage.

Answer 1

Ans:- Increase in the minimum wage variously affect the employment. The minimum wage increase doesn't help to all persons because if the minimum wage of employees increasing, the employer give more wages to the employees. As a result of this increasing minimum wage employers normally reduce the number of employees,it result unemployment. But the increasing minimum wages encourages the customers spend more, this help many business to develop and also it help to develop the economy and increasing the customer demands . Increasing minimum wage help the employees productivity also. But it create some kind of unemployment. The poor people get no benefit from increasing minimum wage.