The effect of minimum wage laws on income inequality Essay

The effect of minimum wage laws on income inequality - Essay Example Income inequality is one of the major problems faced by the society through out the world. It may vary in its extent from one country to another country, but is omnipresent in its existence. Several steps are required to reduce the income differences among different sections of the society. Even though effort have been made at government and non government levels, still lot of inequality in income is clearly visible which is to be managed effectively for better prosperity of mankind (Levy and Murnane, 1992). The effect of uneven distribution of income will certainly influence the income inequalities among different sections of the society. Minimum wages laws will significantly reduce these anomalies and reduce the income inequalities (David M Cutler and Lawrence F Katz,1992). However several researchers found that minimum wage laws may result in higher income inequalities (Cotterman, 1981 and Kaun, 1965). Literature has been collected from different sources relating to the origin of the minimum wages laws and their consequences in different countries. Similarly the information relating to the economic or income inequalities was also reviewed. Consequences of income inequalities and the necessity of minimum wages laws and international scenario of minimum wages were also studied and analyzed thoroughly. The positive and negative effects of minimum wages laws on income inequalities were discussed in detail. Wages are what a worker gets from money or solid appreciation of their work. This differs according to education and constitution the worker belongs to and works in. It is negotiable and thus the worker could offer more for his working time the more the appreciated he is and the effect of such behavior is the giving efficiently into the work done. If improperly done, the law has the right on the side of the customer and employer to cut