CalMatters: California’s Health Care Sector Grapples with Rising Minimum Wage Costs

Article published: 13 November 2023

IB Economics Syllabus: Microeconomics (labor markets, minimum wage impact)

California’s recent decision to raise the minimum wage has significant implications for the state’s health care sector. This policy change, aimed at improving the economic well-being of low-income workers, also brings challenges for health care providers, particularly in managing increased labor costs without compromising the quality of care.

IB Economics (IA) Commentary Suggestions:

In your IA, you can look into the effects of minimum wage policies on the labor market within the health care sector. Utilize diagrams like the Labor Market Equilibrium (showing the balance between labor supply and demand) from the IB Economics syllabus. Discuss how the increased minimum wage can affect employment levels, wage costs, and the overall efficiency of the health care market. The key economic concept to focus on is equity, exploring the balance between fair wages and employment opportunities in the health care sector.

Source of image: Rich Pedroncelli/AP Photo

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