Research and Bondibene Riley (2013) in the UK at the now underpaid (low-pay Firms), the results showed that the minimum wage increase still impacts labor productivity in these enterprises. However, increased levels of labor productivity have become weaker than the adjustments to the minimum wage before. Remarkable results have shown that although the minimum wage increase, but the authors did not find differences in output (including labor productivity) between the groups of low-paid business (low -pay firms) and group businesses pay higher wages (slightly better wages). This is proof that the minimum wage seems to have little effect in boosting labor productivity in countries with developed industry. Similarly, the study's authors Draca et al (2006) also showed that UK firms' profitability is reduced if wages rise, implying that wage increases do not increase productivity, but only increase labor costs lead to reduced profits.
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