Effects of Minimum Wage on Teenage School Dropouts

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Using reliable sources of information state your position on the issue. What are the rationales, drawbacks, and/or consequences for adopting an existing law or policy? Is there a market failure? Is there a cause for government intervention? Which policy would you adopt in this case? Propose the best policy toward regulation (if any) of the market. Support your statements with facts and arguments. You need to think deeply about the topic and use facts and economic arguments to support any position you feel is right.


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The minimum wage refers to the lowest amount of money that can be paid to employees in a given country according to the requirements of the law. In the United States, there has been the need to increase the minimum wage as a way of reducing inequalities among the citizens (Smith 4). Although previous studies attempted to show the effects of minimum wages on inequality, petite has been done to show the effects of minimum wages on the educational decisions of teenagers, thus their levels of education attainment. Low minimum wages encourage school dropouts among the low socioeconomic students, affecting their standard of attaining basic education and their success in life.


The education attainment level of the teenagers from poor socioeconomic backgrounds in the United States is adversely affected by the minimum wage. Many economists argue that the teens are mainly subjected to this wage pay because of the lack of skills (Hamrock and Warren 5). In the United States, many of the employed teenagers earn the minimum wage, with only a small percentage earning slightly above. The ability of the labor market to absorb teenagers with little or no skills at all results in the flow of teenagers from the school setting to employment. Many of the high school students who have to work to make ends meet eventually leave school. The minimum wage is, therefore, considered to have negative consequences on education attainment among the teenagers from low socioeconomic backgrounds.

Policy Adoption With the declining state of education in the U.S, the issue of educational attainment among teenagers is important to both the researchers and the policy makers (Morris 3). The reason for this concern is that teen education is more relevant to their success in the coming years rather that their employment…

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