What are the true benefits of a national minimum wage; a) for the employees b) for the employers

Essay by sdg8481University, Bachelor'sB+, February 2003

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The topic that I have chosen to discuss is the very controversial National Minimum Wage, which has recently (April 99) been introduced into the British Economy for the first time. In the preceding work I will be undertaking a research review of the affects that the Minimum wage will have, I will especially be focusing upon the costs and benefits of the scheme for employers and their employees. Therefore the question of which I have fronted is as follows;

·What are the true benefits of the National Minimum Wage for Employers and Employees?

In an attempt to answer this common political and social question I will produce a literature review. The review will analyse and evaluate the findings and opinions of authors, whilst comparing and contrasting these with other such writers/researches of the present and the past. However, I will also analyse how their opinions were founded by looking at how and what types of research they carried out, in doing so I will express any possible flaws and downfalls in their research method.

The body of literature that I will be focusing on will mainly comprise of theoretical articles and empirical study reports, but in order to reflect other opinions and attitudes I feel that other sources such as the media (broadsheet newspaper articles and Television) and pressure group (trade union) articles should be reviewed, especially as the minimum wage is a relevant and opinionated subject. From the results of my own initial readings into the subject it is evident that the majority of the articles and research has been performed in the USA, thus the articles refer to the US minimum wage that has been in force since President F. Roosevelt's congress introduced it in 1938. This lack of UK and local research is due to...