Which of the following are the effects of minimum wage legislation?

Black Markets Develop

The quantity supplied of workers falls

Every worker benefits from minimum wage legislation

Hiring opportunities are inefficiently allocted amongst workers

The quality of workers, measured by educational credentials and experience, falls.Which of the following are the effects of minimum wage legislation?
Black markets develop. If you have a small job that you need done, but you cannot afford to pay the minimum wage, you might want to find someone who would be willing to work for below minimum wage, but cannot find a job at that rate, and hire him for a wage below minimum wage. But if this is illegal, you would hire "under the table", or in the black market. The job, wages, etc. would not be reported. No income or payroll taxes would be collected or reported.



Hiring opportunities are inefficiently allocated amongst workers. Any outcome that is not the equilibrium outcome would be inefficient. If a minimum wage is effective, it would be set above equilibrium, where the quantity demanded is greater than the quantity supplied, an inefficient outcome.



Those are the only two items on the list that are correct.