What economic theory predicts will happen with a minimum wage set above the equilibrium wage rate?

Standard theory
Minimum wage behaves as a classical price floor on labor. Standard theory says that, if set above the equilibrium price, more labor will be willing to be provided by workers than will be demanded by employers, creating a surplus of labor, i.e. unemployment.

Why are some workers paid more than others?

Why do some jobs pay more than others? Pay is just the price of labor, so like all prices, it’s determined by demand and supply forces. Employer demand depends on how much value the job creates. So a high-value high-skill job pays very well (doctor), while a low-value low-skill job (fast food worker) pays very little.

Why does minimum wage differ from one place to another?

A national minimum wage – that has only one rate applicable to all the workers of a country – is based on the idea that every worker has equal rights to the same wage protection. However, the cost of goods and services can differ substantially between regions within the same country.

Does Jersey have a minimum wage?

​A proposition has been lodged to allow the Minister for Social Security to increase the minimum wage in Jersey in January 2022. The current minimum wage was set at £8.32 an hour in April 2020 and has stayed at that level since. The pandemic has particularly affected those on the lowest wages.

Is there a difference between minimum wage and living wage?

The NLW is calculated by the Government based on a proportion of the median level of earnings, whereas the Living Wage is calculated independently of Government and is based on the amount people actually need to get by.

What is the Living wage UK?

There is a UK rate and a London rate. The UK Living Wage is £9.50 an hour, and the London Living Wage is £10.85 an hour for 2021/22. The Living Wage is based on the cost of living. The Resolution Foundation is a think tank that aims to improve the living standards of low and middle-income families.