1.6.4 The influence of the national minimum wage and living wage on labor markets

• The living wage is legally enforced by the government.

  False
• What is the primary purpose of the national minimum wage?

  Protect low-wage workers
• The living wage aims to ensure workers can meet their basic needs
• Who calculates the living wage in the UK?

  Independent organizations
• How do minimum wage laws affect low-skilled workers?

  Increase wages
• What is the likely impact of the living wage on low-skilled workers?

  Improved standard of living
• What is the national minimum wage designed to protect?

  Low-wage workers
• The national minimum wage is a legally enforced minimum hourly rate
• The living wage applies to all workers.

  False
• Match the wage type with its key characteristic:

  National Minimum Wage ↔️ Legally enforced by government

  Living Wage ↔️ Ensures basic standard of living
• Minimum wage laws may improve household incomes for low-skilled workers
• How does the living wage affect wages for low-paid workers?

  Increases wages
• The living wage may reduce employment as employers cut costs
• Trade unions can influence the level of the minimum wage through collective bargaining.

  True
• One argument against minimum wages is that they reduce employment
• The debate on minimum wages often focuses on balancing worker welfare with potential negative effects on the economy
• The national minimum wage is the legally enforced minimum hourly rate
• The living wage is calculated based on the cost of living
• What is the primary goal of the living wage?

  Ensure adequate income
• The national minimum wage applies to all workers, regardless of age.

  True
• Compliance with the living wage is voluntary by employers
• Part-time workers always benefit from minimum wage laws.

  False
• Job losses due to minimum wage laws are more likely in sectors with high labor intensity
• The living wage is legally enforced by the government.

  False
• Who calculates the living wage?

  Independent organizations
• The living wage is calculated based on the cost of living
• What is one potential effect of minimum wage laws on employment?

  Job losses
• There is a trade-off between enhancing worker welfare and maintaining employment levels.


  True
• The living wage aims to ensure workers can meet their basic needs.


  True
• Match the organization with its role in wage setting:

  Government ↔️ Sets the national minimum wage

  Trade Unions ↔️ Negotiate minimum wage levels
• What is one effect of trade union involvement in minimum wage setting?

  Higher minimum wages
• What is one argument in favor of minimum wages?

  Protects low-wage workers