National Minimum Wage (AQA A-Level Economics): Flashcards
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National minimum wage (NMW)
National minimum wage (NMW)
Legally-enforced hourly pay rate employers must pay
Primary purpose of NMW
Primary purpose of NMW
Protect workers from exploitation
Min wage above equilibrium effect (competitive market)
Min wage above equilibrium effect (competitive market)
Creates excess labour supply/unemployment
Monopsonist definition
Monopsonist definition
Single buyer of labour influencing wage rate
Min wage effect in monopsony
Min wage effect in monopsony
Can increase both wages and employment
National living wage (NLW) age threshold
National living wage (NLW) age threshold
23 and over
NLW hourly rate (April 2022)
NLW hourly rate (April 2022)
£9.50
Key advantage of NMW
Key advantage of NMW
Reduces exploitation and poverty
Groups most affected negatively by NMW
Groups most affected negatively by NMW
Young workers, unskilled, long-term unemployed
Card & Krueger finding (NJ min wage increase)
Card & Krueger finding (NJ min wage increase)
Employment increased 13% vs control (PA)