Minimum wage
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The purpose of this essay is to investigate the minimum wage in the UK, including the theory behind the UK Statutory Minimum Wage, and the effect on various stakeholders.
Minimum wage was introduced in 1997 by the UK government. It introduced a minimum wage for worker for basic living. It would be unlawful to pay a worker below a minimum wage. It aims prevent poverty and promote fairness in the workplace. It is also written in the European Union Social Chapter. Stakeholders can be defined as any people, or business organisations have any interests in a business.
From the diagram, it can be clearly seen that, if there is a minimum wage which is high than the current equilibrium point, there could be a contraction on quantity of labour demand. Therefore, there would be a exceed supply of labour and shortage of demand of labour, because the cost of labour increased. That means that employment would be likely to fall...