Gross Domestic Product
Sabia, J. J. (2015). Minimum wages and gross domestic product. Contemporary Economic Policy, 33(4), 587-605.
GROSS DOMESTIC PRODUCT
Minimum salary refers to that lowest amount of pay that is acceptable by a law of a nation. It is reached by an exclusive agreement by the labor organization and the government. The gross domestic product, on the other hand, refers the total monetary value of the entire product produced in a country at a specific time (Sabia, 2015). This article explains the relationship between the minimum wage and the gross domestic product of a nation. According to the theoretical notion, an increase in the minimum wage leads to a corresponding increase in the gross domestic product. However, there are many empirical studies which have proven otherwise. This article, therefore, explores the actual relationship between the two concepts.
According to the analysis of the state data for the GDP from 1998 to 2007, with differen...