Principles of Microeconomics / Unit 3 MIC 0210 short lesson, about 20 seconds
Minimum Wage and Living Wage
Captions available
The idea
A minimum wage is a legal floor under the hourly wage. A living wage is a higher local floor, usually applied to a city's own employees and contractors.
In practice
A floor above equilibrium draws more job-seekers while employers hire fewer.
Where people slip
Workers who keep their jobs gain; workers who lose them do not. Both groups are in the same diagram.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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