In various countries, the minimum wages have been increased to raise the lowest wage line and generate more social benefits. However, different economic theories expressed different views on the minimum wage rise. There has been controversy over whether to continue raising the minimum wage or abolish it in the future. This paper will compare the minimum wage effect of the behavior economy with that of the neoclassical economy on the labor demand side like firms and the labor supply side like workers, by comparing this social cost and benefit to illustrate that minimum wage is beneficial to the society.

Xiaoyu Hu. The minimal wage effects in the behavior and neoclassical economic theory. Academic Journal of Business & Management (2023) Vol. 5, Issue 6: 82-86. https://doi.org/10.25236/AJBM.2023.050613.

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