One of the probable effects of an increased minimum wage in Nigeria is?

a

to create volunteer unemployment

b

to decrease the wage rate

c

to increase the level of unemployment

d

to create involuntary unemployment

e

to increase the demand for labour

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Correct Option
d

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Discussions (3)

Darim012
6 years ago

increase in minimum wage will make employers not willing to employ people which will lead to involuntary unemployment on the aspect of employees

Deepthinker581
4 years ago

The minimum wage is the lowest wage that an employer is allowed to pay an employee, according to a law or
agreement

Involuntary unemployment occurs when a person is unemployed despite being willing to work at the prevailing wage.
The answer D is correct

funtojambite
6 years ago

How does increasing minimium wage create involuntary employment

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