Week 1 Discussion Minimum Wage 3

Week 1 Discussion Minimum Wage 3 - I really do not agree...

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I found a very interesting and in depth article that supports the idea that an increase in minimum wage would also increase productivity. The efficiency wage model suggests this to be true and affirms that higher wages result in less turnover, decreased training costs, and better motivation in the workplace. Contrary to the other articles I have read, this one says that as long as there is enough of a rise in motivation and productivity, there need not be a decrease in employment.
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Unformatted text preview: I really do not agree with this article. I understand the research, but in my experience, people have a certain work ethic and it does not seem to be affected by a pay rate change. Of course this is a personal opinion but I think that people who do not hold themselves accountable for their productivity will not all of a sudden care more if their pay is increased by a dollar. http://www.swcollege.com/bef/policy_debates/increase_minimum.html...
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This note was uploaded on 03/26/2012 for the course ECON GM545 taught by Professor Gotches during the Summer '11 term at Keller Graduate School of Management.

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