Microeconomics: Discuss the Benefits of a Minimum Wage?

Define minimum WageKnow the Stakeholdersdraw the basic graphthen draw out the change - step by stepAnalyse the Graph and what has happened and how the stake holders have been affectedevaluate/ conclude the answer using the graph
Minimum Wage: is the legal minimum hourly rate of pay. Imposed by Government to raise income and aid povertyStakeholder include Governments, Workers, Employees, Unemployed.Higher wage = higher living standards for poorer, may increate better incentive if paid more to work harder or lift people out of benefits to work. Resulting in higher tax revenue too. But higher Wage - could have effect on working less hard due to guaranteed high wage therefor quality of produced goods fall.graph shown - on whiteboard/paper.Decrease in inequality from a higher wage of lowest paid workerUsing the Graph we can see that the supply for labour has increased and the demand for labour has decreased. Resulting in higher Unemployment as employees may not be able to afford their workers(are also put off hiring more). This could lead to higher InequalityOnly (Ld) workers benefit, the workers between Ls-Ld - involuntarily Unemployed, theoretically they work for less (illegal) until the line falls back to equilibrium.Evaluation - the extent of poverty being alleviated depends on level of people being paid minimum wage. Employers and Employees not affected if not on min wage. Depends on Size of Min wage, effects outcome (may be negligible).Income and Substitution effect!Theory Vs. Reality.