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If the government raises the minimum wage by 6%, the number of people employed falls by 2%. What is the elasticity of employment with respect to the minimum wage

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abiolataiwo2015

Assuming the number of people employed falls by 2%. The elasticity of employment with respect to the minimum wage is -0.33.

Elasticity of employment

Using this formula

Elasticity of employment=-Fall in number of employed people rate /Minimum wages rate

Where:

Fall in number of employed people=-2%

Minimum wages rate=6%

Let plug in the formula

Elasticity of employment=(-2/6)

Elasticity of employment=-0.33

Inconclusion the elasticity of employment with respect to the minimum wage is -0.33.

Learn more about Elasticity of employment here:https://brainly.com/question/8729849

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