2006-11-29 14:29:42 · 4 answers · asked by tubaPLAYA 1 in Education & Reference ➔ Higher Education (University +)
If there were no minimum wage, the wage would be set by the laws of supply and demand. At some wage level, the number of people who want to work for that wage will be equal to the number of people firms want to hire for that wage.
If the minimum wage is below that wage level, it is non-binding because it doesn't matter that there is a minimum wage. Firms want to pay people more than the minimum wage because if they lower the wage they pay, not enough people would want to work.
If the minimum wage is above that wage level, it is binding. Firms are forced to pay the minimum wage. Many people are willing to work at that wage. Firms cannot or are not willing to hire that many people at that wage. The minimum wage prevents the firms from lowering what they pay in order to accommodate all of the willing workers, so there is unemployment.
2006-11-29 14:43:12 · answer #1 · answered by bictor717 3 · 3⤊ 0⤋
Binding Minimum Wage
2016-10-02 01:21:35 · answer #2 · answered by ? 4 · 0⤊ 0⤋
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RE:
What is the difference between a ‘binding’ and ‘non-binding’ minimum wage?
2015-08-10 02:23:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋
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Minimum wage is £5.35 per hour, JSA is £59.15 per week council tax and housing benefits vary, depending on your rent and the council tax banding. Don't forget, if you are in a low paid job, you could qualify for working tax credits, etc.
2016-03-27 05:28:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋
binding, simply means, mandatory! Some jobs are exempt, so, non-binding (just a suggestion)
2006-11-29 14:32:35 · answer #5 · answered by T C 6 · 0⤊ 4⤋