This is a key topic in the study of the labour market and a great theme to focus on in exams: lots of scope for high level evaluation and linking issues together (such as labour markets and inequality)!
Tutor2U has provided (once again) a fantastic summary of the key issues together with some wider reading.
Don’t forget – the trade union/NMW diagrams are very similar – so well worth investing the revision time on.
HOMEWORK: Read the LSE article evaluating the NMW and summarise the key points raised.
Once you have had time to evaluate the key arguments relating to the national minimum wage/living wage, you will work together to develop an answer to the question below:
Evaluate the view that the best way to narrow wage differentials is to increase the National Minimum Wage. (25 marks)