Create an Annotated BibliographyASSIGNMENT: Using your research question, working thesis, and outline from Touchstone 1.2, create an annotated bibliography that provides a synopsis of your sources and

Running head: EFFECTS OF THE MINIMUM WAGE TO POVERTY ERADICATION 0

Effects of the Minimum Wage to Poverty Eradication

Student’s Name

Institutional Affiliation

Effects of the Minimum Wage to Poverty Eradication

Introduction

The minimum wage affects poor individuals or poor households. The National minimum wage increases the incomes of these groups of people or families in a significant way. Since the employment effects do not offer extensive evidence on the required objective of how the minimum wage affects poverty eradication, it is essential to carry out a research study on the effects of the minimum wage in eradicating poverty. Many governments and states have established the minimum wage in the labor market to intervene in poverty issues (MaCurdy, 2015). The minimum wage policy was enacted to reduce exploitation and poverty extremes while increasing productivity in companies as well as encouraging investments. Therefore, the minimum wage aims at financing the low-income earning households, thus increasing their incomes and, in return, reduces the poverty levels of such families.

Thesis

The minimum wage addresses the issue of poverty among low-income households by increasing their earnings through increased revenue, hence improving the entire economic status in general.

Research questions

It is essential to understand the minimum wage and how it affects the attempts to eradicate poverty among Americans. Therefore, I have developed some research questions to guide on the same.

• What is the effect of the minimum wage on poverty eradication?

• How does the minimum wage affect a country’s economic fiscal monetary?

• How have industries reacted to the minimum wage policy?

Required data to answer the research question

Research on the population earning less than the required minimum wage will be taken across the nation. In this case, participants from both genders (female and male) will be sampled through a stratified random sampling technique.

Body paragraphs

1. Understanding the effect of minimum wage on poverty eradication requires researchers to understand the labor market and trends. Therefore, after following the labor market, one will tell whether increasing or reducing the minimum wage is vital to eradicating the poverty levels among Americans

2. Formal sector workers are the primary targets of the minimum payments. Therefore, it is crucial to understand their status and households because the minimum wage targets those encountering low-incomes (Slonimczyk & Skott, 2012).

3. Increasing the minimum wage will increase the income earnings of the poor families hence reducing poverty levels of the people therefor.

4. According to research done by David Autor, Alan Manning, and Christopher Smith, it is evident that the minimum wages have declined from 1979 to 2012 and the measures of the effects of each increase were vital to indicate the impact of the minimum wage in poverty eradication (David et al. 2016).

5. Women are paid less as compared to men and hence, fall below the wage spectrum. Therefore, the minimum wage affects female wage inequity, which has consequences on working women, especially single mothers, who depend on tips to keep them going.

6. Increasing the minimum wage will reduce poverty levels among people; however, some formal workers will lose their jobs in the event. According to Howell (2014), as much as the criterion for increasing the minimum wage focuses on increased costs and income, it should also encompass job loss. Thus, if there is a need to maximize employment opportunities, holding a decent minimum wage hostage to a standard of joblessness is not the best idea (MaCurdy, 2015).

Conclusion

Minimum wages have effects on the attempt to eradicate poverty levels in America. Increasing the minimum wage will increase the income earned in households, hence, uplifting the living conditions of the households in general. However, when increasing the minimum wage, some workers will lose their jobs, making it a debatable move or policy in the long run.

References

David, H., Manning, A., & Smith, C. L. (2016). The contribution of the minimum wage to US wage inequality over three decades: a reassessment. American Economic Journal: Applied Economics, 8(1), 58-99.

MaCurdy, T. (2015). How effective is the minimum wage at supporting the poor? Journal of Political Economy, 123(2), 497-545.

Slonimczyk, F., & Skott, P. (2012). Employment and distribution effects of the minimum wage. Journal of Economic Behavior & Organization, 84(1), 245-264.