In the labour market the employers will have some monopoly power over the unskilled workers, and they will always try to decrease the wages (profit maximizing firms). Pour people are better of with an underpaid job than no job, and this makes them vulnerable for being exploited by employers. When the government set in a minimum wage they prevent firms from exploiting the pour and low-paid workers. This moral aspect is the main argument for the proponents of minimum wages. However, this regulation can result in firms moving their production to other countries who have no minimum wage legislation. You can see this happening to many large firms like Nike and Gap. And it is not good fore the labour market in the UK. There is another dilemma. When the wages rise, youths find it tempting to quit school and s

Some common words found in the essay are:
Nike Gap, , L1 MFC, minimum wage, minimum wages, labour market, wage regulation, minimum wage regulation, equilibrium wage, unskilled workers, low-paid workers, market force, demand curve, paid workers, minimum wage set, unemployment labour market, set minimum wage, below equilibrium wage,
Approximate Word count = 1152
Approximate Pages = 5 (250 words per page double spaced)