4 ms·

Changing a wage for a country, as the post said, is probably a bit more macro- than micro-

• BurningFrog 11y ago
  The standard Microeconomics¹ analysis is clear: If an employee is paid $10/h and produces $12/h of value for the employer, the employer makes a profit of $2/h and will want to keep the employee. If they must pay $15/h this becomes a $3/h loss, and the employee will be fired. It's hard to see where the size of the country would enter into this. Of course, if a raised minimum wage causes higher unemployment etc, this will have macro economic effects, but that's secondary effects. ¹ A more descriptive name for this branch of Economics would be "Price Theory", but we're stuck with the name.