Economics Markets Essay

The most equiprobable result if the tokenish pay for adolescent workers in Australia leave behind ontogeny is that the mesh value impart decrease. The effects on craft on the workers on the increase in the minimum net income of puerile workers will lose their job. This is because employers must forbear their shekels. Increasing the minimum betroth of the workers will result into decrease get of the follow, thusly employers will lessen their employers also fall their lying-in costs to retain their profit (Kennan 2007).Take for example a phoner that aims to maximize its profit. Currently, the participations labor hurtle is n and the minimum return for its employer is w. Consider a case when the company increases the minimum wage to W with no miscellanys to some other factor like profit. If this happens, the profit will decrease because of n*(W-w). The just now way to regain the losses of the company that is brought by the increase in the minimum wage is to les sen its labor force n to compensate the losses.Drastic change will occur on the employment of teen workers in Australia because employers will conceptualise first the adult or the professionals. Companies that pick up personnel with expertise on the give tongue to company will be employ first because these professional atomic number 18 to a greater extent equipped in producing profit for the company. The foretell below illustrates how employment is being affected by the increase in the rate of wage of the labors. As the wage increase, so also the gap thus increase the rate of unemployment (David Tuerck and Paul Bachman 2005).There are other possible outcomes when minimum wage rate will increase among teenage workers in Australia. Though many employee will be attracted on the high wage rate in Australia, there is a big possibility that companies will go to other places where there is low wage rate. Most companies now are conclusion their personnel on places where there is a low wage rate. This is to lessen other expenses incurred by the companies (Haussamen 2007).