What can be a consequence of a minimum wage policy according to critics?

What can be a consequence of a minimum wage policy according to critics?

• A. It motivates employees to work harder
• B. It results in higher wages for all
• C. It leads some companies to hire part-time workers
• D. It increases job satisfaction

Answer: (C)

Critics argue that a minimum wage policy can lead some companies to hire part-time workers as a consequence of increased labor costs. When the minimum wage is set at a certain level, employers facing higher expenses may opt to reduce the number of full-time employees they hire. This can encourage them to employ more part-time workers instead, allowing for greater flexibility in managing their labor costs. Part-time positions can also mean that employers can avoid providing benefits that are typically associated with full-time employment, thereby further minimizing expenses. This shift can ultimately affect the overall job market by increasing part-time work and potentially reducing the availability of full-time positions.

Critics argue that a minimum wage policy can lead some companies to hire part-time workers as a consequence of increased labor costs. When the minimum wage is set at a certain level, employers facing higher expenses may opt to reduce the number of full-time employees they hire. This can encourage them to employ more part-time workers instead, allowing for greater flexibility in managing their labor costs. Part-time positions can also mean that employers can avoid providing benefits that are typically associated with full-time employment, thereby further minimizing expenses. This shift can ultimately affect the overall job market by increasing part-time work and potentially reducing the availability of full-time positions.