The Impact of Minimum Wage System on Low-Income Groups

Abstract

The minimum wage system sets a legal floor on the income of workers. It provides economic security for low-wage workers and ensures that their basic needs are met, thereby reducing poverty. For low-income workers, increasing the minimum wage directly enhances their earnings, living standards, and financial stability. As a research focus, the primary area of examination would be the precise effect of minimum wage adjustments on the income levels of those in low-paying jobs: analyze the changes in the real income of low-income workers after the augement of minimum salary and the improvement influence of family economic conditions. Second one is exploring the impact on this system changes employment sector: Examine whether raising the minimum wage causes employers that reduce hiring or layoffs, and the potential impact of such changes on low-skilled labor markets. The last one is analyzing the impacts of minimum wage policies of psychological and low-income groups’ social wellbeing: Using questionnaires to understand changes in the perception of low-income workers about their job satisfaction, quality of life, and social status. The rise in this system significantly rose the income level of low-income workers, helped to alleviate poverty, and raised the basic standard of living of these families. In the short term, that increase may have a certain negative impact on some labor-intensive industries, in the form of a small number of job losses; But over the longer term, the job market stabilizes as companies adapt to increased costs and improve efficiency through technological innovation.