Minimum Wage Regression Essay Research Paper Jadro
Minimal Wage Regression Essay, Research Paper
17 February 2000
Minimal Wage Arrested development
The proposed addition in minimal pay will make a figure of things to the economic system. The greatest consequence it has will be on rising prices. There is a strong correlativity between rises in the lower limit pay, and raises in rising prices. The consequence of raising the minimal pay on employment is really small. The correlativity between an addition in rising prices, and an addition in unemployment is weak besides.
The strongest correlativity is between additions in minimal pay foretelling additions in rising prices. The equation for this is CPI= -25.9+38.8 lower limit pay. The R-sq value is 87.5 % , and the R-sq ( adj ) value is 86.8 % . This is cogent evidence of a strong relationship between the two variables. Additions in minimal pay predict additions in rising prices 86.8 % of the clip. When minimal pay is increased, it brings a rise in rising prices. There is more money put into the economic system with a minimal pay hiking, but rising prices counteracts this. As rising prices rises, the value of the dollar lessenings. There is really small net alteration. The correlativity between additions in minimal pay, and increased
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unemployment is highly low. The equation that theoretical accounts this relationship is Unemployment= 9.75-.844 minimal pay. The R-sq value is 19.0 % , and the R-sq ( adj ) value is 14.7 % . This indicates a really lame correlativity. Increases in lower limit pay predict increased unemployment 14.7 % of the clip. Basically, increases in lower limit pay are a really inaccurate forecaster for an addition in unemployment. The proposed lower limit pay addition will hold about no consequence on unemployment harmonizing to this theoretical account.
Raises in rising prices have a really weak correlativity to increased unemployment every bit good. The equation that theoretical accounts this fact is Unemployment= 9.30-.0227 CPI. The R-sq value is 23.6 % , and the R-sq ( adj ) value is 19.6 % . This indicates an addition of rising prices predicts an addition of unemployment 19.6 % of the clip. This, once more, is an inaccurate index. Increases in rising prices have about no consequence on unemployment, as shown by the theoretical account.
These three relationships show a concatenation of events. When the lower limit pay is increased, rising prices will travel up every bit good. This does non needfully predict an addition in unemployment. An addition in rising prices does non needfully predict an addition in unemployment either. Basically, an addition in minimal pay will most likely predict an addition in rising prices.