Article Review 1 Essay Example | Topics and Well Written Essays - 500 words

Article Review 1 - Essay Example The study by The Employment Policies Institute, a nonprofit research organization, proves that for every 10 per cent increase, the unemployment among minorities like the Hispanics, teenagers and African Americans has increased considerably. Moreover, low-skilled unemployment among high school drop-outs has also grown. Studies by Dr. David Neumark, a University of California, Irvine economist, support these findings and states that the law has â€Å"the largest negative effects on low-skilled employees, such as teens and minority teens†. By destroying the opportunities of entry-level jobs for many, the law robs them of the right to learn skills and develop good work habits which would help them develop a career. James Sherk, a labour policy analyst at the Heritage Foundation, points out that the law also has the negative effect of reducing many workers’ job opportunities and working hours. He observes that â€Å"wage hikes cause businesses to reduce the number of workers they hire and the hours they ask their employees to work†. Though there are some workers who initially earned near the minimum wage experience gains, the general impact would be a negative one for those who seek entry-level jobs, as Neumark’s study suggests. According to the Hoover institution, 20 per cent could lose their jobs unless there are offsetting tax cuts for small businesses. Lambro points out that there is an increasing tendency among industries to replace workers with machines, computers and the internet facility, to avoid the extra expenses they would have to meet by paying the minimum wages to a large number of people. Such job reduction will accelerate if the law continues to impose burde n on small businesses. Moreover, Sherk’s study also points out that the general benefactors of the law are not poor, dispossessed people, but teenagers from affluent families. This again reduces the