Occupational licenses restrict the number of workers available to do the job, shifting labour supply curve left and pushing up wages.
-Recession
-Decreased demand for the product the worker produces
-If labour is more expensive, employers want less of it.
-Workers are paid for the revenue they can make for the firm.
-Workers who are not skilled enough to make revenue above the minimum wage will not have a job.
Inelastic
Because these jobs are necessary, so a higher minimum wage just means that firms keep the same employment and pay more.
Many firms have bargaining power over their workers.
They under-pay their workers in a free market.
Minimum wages mean they correct this, and may hire more workers as a result.
Because a higher wage will incentivise workers to work.
More generous welfare payments decreases the incentive to work, shifting labour supply curve to the left.
-Economic Growth
-Increased productivity of the worker.
-Increased demand for the product the worker produces.