Minimum Wage Ease Provity Problem?

Topics: Minimum wage, Employment, Wage Pages: 2 (610 words) Published: February 26, 2013
Everyone in the world is spending half or more of their life on having their work and the wages are the factor that can ensure their quality of life. As the consumption level in Hong Kong is increasing year by year, employees’ wages started not affordable to their life and the poverty problem comes more serious. By then, in year 2010, Hong Kong government carried out the minimum wage policy and set the price at $28 per hour. The carry out of minimum wage policy apparently can ease the poverty problem in Hong Kong, in fact it brought out some of the latent problems which show that the policy appeared a deep discrepancy in between.

Fong (2009) states that “When the minimum wage carried out to protect the employees, employers either reduce their workforce or number of hours. Allowing a lower wage allows those same employers to hire more people, decreasing unemployment statistics." This is one of the problem appeared after the minimum wage policy is working. Employees may try to lower the number of working hours of employees to balance the amount of salary paid and some of the small size companies even cut off the number of staff as they could not afford the increase of salaries. As this happens, the unemployment rate may increase and to contribute nothing on the poverty problem.

The range of salaries is always representing the ability and education of a person. As the wages become higher, the requirements of jobs will increase relatively. “There hasn't always been a minimum wage law to protect unskilled or semi-skilled workers.” (Lord 2008) The words that pointed out by Lord is representing the situation in Hong Kong, people with no skills or low abilities are difficult to apply for a job or even no chance of applying for a job. This problem may also continually worsen and affect the poverty problem in Hong Kong.

As the minimum wage policy launched, employees have to pay more cost on their business that they may not willing to give much welfare to the...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about Minimum Wage
  • Minimum Wage Essay
  • Minimum Wage Essay
  • Minimum wage Essay
  • Minimum Wage Essay
  • Minimum Wage Essay
  • Essay about Minimum Wages
  • Essay on Minimum Wage

Become a StudyMode Member

Sign Up - It's Free