top of page

Low-Paid Workers and Poverty Reduction


Discuss whether or not an increase in the wages of low-paid workers will reduce poverty.


Labor Market and Income Distribution

Frequently asked question

Preview Answer

I. 🍃Introduction
- Definition of poverty
- Importance of understanding causes and effects of poverty

II. Why raising pay can reduce poverty
- Low pay as a cause of poverty
- Increasing income of poor can lift them out of poverty
- Increased spending on basic necessities
- Stimulating higher output and demand
- Investing in education and skills

III. Why raising pay may not reduce poverty
- Small increase in pay may not be enough
- Increase may be less than inflation rate
- Unemployment and lack of jobs for poor
- Increased costs of production for firms

IV. 👉Conclusion
- Importance of considering both sides of the argument
- Need for comprehensive solutions to poverty

Ops... End of preview!

Already purchased Economics Study Pack subscription? Amazing! Click below

What's included 
✔️Full essay
✔️Marking Schemes
✔️Examiner's report

Economics Study Help
bottom of page