This paper intends to address is how employment, unemployment, and underemployment in the labor market, in terms of quantity, respond whenever there are wage adjustments. It should be put into mind that wages are considered cost for employers, while for workers these are funds to make their ends meet. Any adjustments made in the minimum wage, certainly, may influence employer’s hiring and firing decision, which eventually could affect labor demand and supply.
With the ongoing discussions on matters pertaining to minimum wage, the intention of this study is to examine how the labor market act in response to wage adjustments, using employment and unemployment rates, and other pertinent data on labor and employment as measurement variables. This study could serve as a reference for policy discourse among decision-makers and members of the regional boards to aid them in their future legislations pertaining to wage and wage adjustments.
