A Note on the National Minimum Wage Debate – IELTS Reading
13 min read
Updated On
-
Copy link
Table of Contents
Limited-Time Offer : Access a FREE 10-Day IELTS Study Plan!
Completing three reading passages, similar to the Reading Answers of A Note on the National Minimum Wage Debate, in just one hour can be challenging if you do not familiarize yourself with the question types and the ways to solve them.
The best solution is to practise IELTS Academic passages, like A Note on the National Minimum Wage Debate, which has appeared in an IELTS Test. It contains some of the IELTS reading question types. If you are interested in familiarizing yourself with all the question types, don’t hesitate to take an IELTS reading practice test.
The Academic Reading passage, A Note on the National Minimum Wage Debate, consists of 14 questions and presents three different types of questions, which are:
- Matching Features (Q. 1-4)
- Diagram Completion (Q. 5-11)
- Multiple-Choice Questions (Q. 12-14)
Book your FREE session with top IELTS experts now to defeat exam anxiety!
Reading Passage
A Note on the National Minimum Wage Debate
A Much of the literature on the minimum wage has as its main theme the question of whether or not the introduction of a national minimum wage reduces employment. The empirical evidence on this point comes mainly from America and is contradictory and inconclusive. This does not, however, prevent the political debate from using the economic evidence. Advocates from both sides do so, with some rhetorical force, despite its contentious nature.
B The proposition that jobs might be destroyed by higher wages follows directly from neo-classical economic theory. However, the empirical studies display findings that are rather milder than theory ‘would expect. A review of such studies by Card and Krueger (1995) concluded that minimum wages ‘had no effect on employment; this despite the evidence of Neumark and Wascher (1992) that the negative effect comes through strongly when teenagers are isolated in the sample. This notion was supported by a later study which showed that teenagers were more likely to be enticed away from education by the higher wages ensuing from statutory minimum wage legislation (Neumark and ‘Wascher 1995).
C Critics of neutral and slightly positive evidence claim that studies cannot, by definition, take account of companies driven out of business by minimum wages. Whilst this is true, a more substantial criticism of the literature would be the dearth of studies based on local labour markets and on those of specific industries. Such studies as exist show a clearer picture – which could be summarised as demonstrating a small negative effect on jobs, but, more importantly, showing the strategic processes which managers use to cope with an imposed rise in the price of labour. Certain types of service industry, for example, can show positive employment effects (Alpert 1986).
D The irony here is that the best evidence is furthest away from the political debate, which, by its very nature, uses a national perspective. Unfortunately, the contentious nature of the evidential base, which is so unhelpful to the jobs argument, permeates into other areas. For example, if the jobs argument is unresolved, then those arguments surrounding the saving to be made on the payment of social benefits to low paid workers hardly get off the ground, because, if jobs are destroyed, unemployment benefit costs rise and offset the savings on income support. Critics of the minimum wage would, of course, argue that it only benefits people who have a job and, therefore, does nothing for unemployment. Advocates, on the other hand, would contend that income support benefits are a wasteful subsidy to bad employers who are, in effect, gaining a competitive advantage over ‘more responsible’ employers. In this argument, the minimum wage would encourage better market functioning and more competitive conditions than the subsidies that prop-up bad employers. They would go even further and point to continental Europe, where minimum wage statutes abound, to suggest that minimum wages are an incentive to develop training. Exactly why this should be so escapes British management, who appear to need a better translation of the text of this argument. However, one point that is well understood is that a national minimum wage could cause a run of differential- maintaining pay claims. The fact that the beneficiaries of a minimum wage usually lack bargaining power (Lucas 1995) and that they are unlikely to be a ‘reference group’ for any sector of organised labour, takes the edge off this argument.
E The EEC has recently tossed a new coin into the ring: the notion of maximum working hours per week. So far this has not touched the minimum wage debate, but the connection is inevitable. A new set of arguments about overtime and shorter hours is about to break through. Whether the poor can best be helped by a minimum wage, or a maximum working week, is a matter for empirical evidence. Whatever the evidence is, it will not stop the political debate from maintaining a national perspective. This is a pity, because an increment for the poor does not go on luxury items and foreign holidays. It is spent on the home and on small scale leisure activities in the local market. Furthermore, if adjustments in taxation to help small business through a sudden rise in labour costs are contemplated, they are best executed through local rather than national government. To paraphrase an American political slogan: it’s the local economy stupid.
Check Out – IELTS Test Day Advice
Questions 1-4
Use the information in the text to match the authors (A-D) with the Findings (1-4) below.
Write the appropriate letters (A-D) in Boxes 1-4 on your answer sheet.
A Neumark & Wascher
B Alpert
C Lucas
D Card & Krueger
Findings
1 The economic influence of those who would benefit most from a minimum wage is not great enough to affect wage differentials.
2 A minimum wage does not influence the number of people who find employment.
3 The beneficial effects of a minimum wage have been observed in some service industries.
4 A minimum wage appears not to have a positive impact as regards teenagers.
Questions 5-11
The diagram below summarizes some of the main points on the minimum wage provided in paragraphs B-D.
Complete the diagram with information from the passage.
You may use NO MORE THAN THREE WORDS to fill each blank space.
Write your answers in Boxes 5-11 on your answer sheet.
Note: The questions mentioned in the image above are from (33-39). which should actually be numbered as (5-11). So, solve the questions accordingly.
5 ……………………………..
6 ……………………………..
7 ……………………………..
8 ……………………………..
9 ……………………………..
10 ……………………………..
11 ……………………………..
Questions 12-14
12 Critics of the minimum wage argue that …
A it makes services more expensive.
B it only helps those already in work.
C it causes inflation.
D it affects exports.
13 According to the writer, the fiscal counterbalance to increased costs should be …
A at national level.
B through Income Tax.
C through VAT.
D at local level.
14 There is a lack of studies based …
A on international industries.
B on the national economy.
C on local labour markets.
D on specific locations.
Join us in the IELTS webinars and learn some crazy tricks and tips to solve Reading Answers in a jiffy!
Answers of A Note on the National Minimum Wage Debate Reading Answers with Location and Explanation
Find the answers and detailed explanations of the questions in the Reading Answers of A Note on the National Minimum Wage Debate and get an idea of how to improve your IELTS preparation further.
1 Answer: C
Question type: Matching Features
Answer location: Paragraph D, Line 9 – Line 10
Answer explanation: The specified lines of the fourth paragraph tell us, “However, one point that is well understood is that a national minimum wage could cause a run of differential- maintaining pay claims. The fact that the beneficiaries of a minimum wage usually lack bargaining power (Lucas 1995) and that they are unlikely to be a ‘reference group’ for any sector of organised labour, takes the edge off this argument.”. So, it can be concluded that Lucas opines that the economic influence of the people who would benefit (beneficiaries) from the minimum wage is less likely to affect the differential of wages as they lack bargaining power. Hence, the answer is C (Lucas).
2 Answer: D
Question type: Matching Features
Answer location: Paragraph B, Line 3
Answer explanation: In the specified line, it is stated that “A review of such studies by Card and Krueger (1995) concluded that minimum wages ‘had no effect on employment…”. This shows that according to Card and Krueger, the minimum wage does not have any effect on the number of employed people (employment). Hence, the answer is D (Card & Krueger).
3 Answer: B
Question type: Matching Features
Answer location: Paragraph C, Line 4
Answer explanation: In the mentioned paragraph, it is given that “Certain types of service industry, for example, can show positive employment effects (Alpert 1986).”. It can be inferred that Alpert pointed out that some (certain) service industries have observed the beneficial effects of a minimum wage (positive employment effects). Hence, the answer is B (Alpert).
4 Answer: A
Question type: Matching Features
Answer location: Paragraph B, Line 3
Answer explanation: The second paragraph mentions “…the evidence of Neumark and Wascher (1992) that the negative effect comes through strongly when teenagers are isolated in the sample.”. It points out that Neumark and Wascher figured out that minimum wage does not have a positive impact (negative effect) when it is focused on teenagers (teenagers are isolated in the sample). Hence, the answer is A (Neumark & Wascher).
5 Answer: low paid workers
Question type: Diagram Completion
Answer location: Paragraph D, Line 3
Answer explanation: In the above-mentioned paragraph, it is stated that “For example, if the jobs argument is unresolved, then those arguments surrounding the saving to be made on the payment of social benefits to low paid workers hardly get off the ground…”. It can be pointed out from the quoted statement that the minimum wage saves money (saving) on social benefits given to the low paid workers. Hence, the answer is ‘low paid workers’.
6 Answer: ‘bad’ employers
Question type: Diagram Completion
Answer location: Paragraph D, Line 5
Answer explanation: Through a reference line like, “Advocates, on the other hand, would contend that income support benefits are a wasteful subsidy to bad employers…”, it can be concluded that the supporters of minimum wage opine that it subsidizes bad employers. Hence, the answer is ‘‘bad’ employers’.
7 Answer: certain service industries
Question type: Diagram Completion
Answer location: Paragraph C, Line 4
Answer explanation: In the cited location, it is stated that “Certain types of service industry, for example, can show positive employment effects (Alpert 1986).”. Based on this reference, it can be inferred that minimum wage has positive effects on employment effects in certain service industries. Hence, the answer is ‘certain service industries’.
8 Answer: development of training
Question type: Diagram Completion
Answer location: Paragraph D, Line 7
Answer explanation: In the provided line, it is said that “They would go even further and point to continental Europe, where minimum wage statutes abound, to suggest that minimum wages are an incentive to develop training.”. This implies that minimum wages also encourage (incentive) development of training. Hence, the answer is ‘development of training’.
9 Answer: differentials
Question type: Diagram Completion
Answer location: Paragraph D, Line 9
Answer explanation: In the specified location, it is stated that “However, one point that is well understood is that a national minimum wage could cause a run of differential- maintaining pay claims.”. From these lines, it can be deduced that the national minimum wage causes pay claims to maintain differentials (differential-maintaining pay claims). Hence, the answer is ‘differentials’.
Unlock Explanations
If you want to have a look at the remaining explanations, sign up!
10 Answer: out of business
Question type: Diagram Completion
Answer location: Paragraph C, Line 1
Answer explanation: In the mentioned location, it is given that “Critics of neutral and slightly positive evidence claim that studies cannot, by definition, take account of companies driven out of business by minimum wages.”. In other words, it can be said that the national minimum wage can drive businesses out of business and it is claimed that they should not be included in studies. Hence, the answer is ‘out of business’.
11 Answer: teenagers
Question type: Diagram Completion
Answer location: Paragraph B, Line 4
Answer explanation: In Paragraph B, it is stated that “This notion was supported by a later study which showed that teenagers were more likely to be enticed away from education by the higher wages ensuing from statutory minimum wage legislation (Neumark and ‘Wascher 1995).”. This statement indicates that one of the effects of the national minimum wage is that teenagers will be lured (enticed) away from education by higher wages. Hence, the answer is ‘teenagers’.
12 Answer: B
Question type: Multiple Choice Question
Answer location: Paragraph D, Line 4
Answer explanation: The given line in the paragraph specifies that “Critics of the minimum wage would, of course, argue that it only benefits people who have a job and, therefore, does nothing for unemployment.”. It is indicated that the critics of the minimum wage point out that it will only help people with jobs and has nothing to do with unemployed people. Hence, the answer is B (it only helps those already in work.).
13 Answer: D
Question type: Multiple Choice Question
Answer location: Paragraph E, Line 8
Answer explanation: In the stated paragraph, it is given, “Furthermore, if adjustments in taxation to help small business through a sudden rise in labour costs are contemplated, they are best executed through local rather than national government.”. This reference proves that fiscal counterbalance to increased costs (adjustments in taxation…through a sudden rise) caused due to factors like increased labour costs is best executed at local levels rather than at national levels. Hence, the answer is D (at local level.).
14 Answer: C
Question type: Multiple Choice Question
Answer location: Paragraph C, Line 2
Answer explanation: In the cited line, it is written that “…a more substantial criticism of the literature would be the dearth of studies based on local labour markets and on those of specific industries.”. It can be asserted that many people criticize that there is a lack of (dearth) of studies based on local labour markets. Hence, the answer is C (on local labour markets.).
Discover “The Ultimate Guide to IELTS Academic Reading” – your exclusive path to triumph!
Tips for Answering the Question Types in A Note on the National Minimum Wage Debate IELTS Reading Answers
Since now you know the answers to the Reading Passage of A Note on the National Minimum Wage Debate with explanations, let us check out some quick tips to answer the types of questions in the ‘A Note on the National Minimum Wage Debate’ IELTS Reading passage.
Matching Features:
In this type of question, you will have to match a list of options with the relevant set of statements. Some tips for answering matching features questions and obtaining a high band in the IELTS examination are given below:
- Read questions and underline or circle keywords. This will help you find out where you would have to read and find later. Also, focus on how often every detail or name appears in the passage.
- Scan the passage and look for information given in the features and questions.
- Skim through the areas that are surrounded by keywords and features in the passage.
- Don’t get confused in case the text has synonyms of the information that is originally present in the question.
- Keep in mind that answers will not be in an order as questions.
Diagram Completion:
The way to solve the diagram completion questions of the IELTS Reading is similar to Table Completion. You will be asked to fill in the blanks in a small passage given in the form of a diagram with the relevant words or numbers. So, let us revise the strategies.
- Read the instructions carefully. It will help you determine the word limit (no more than two, one word, etc) and important terms like ‘using words from the text’ or ‘from the text’. You have to follow these strictly.
- Go through the incomplete diagram first. Also, think about keywords and how they could be represented by synonyms or paraphrasing.
- Locate where the information is by scanning quickly. If you can’t, move on.
- Study the reading text by using the skimming and scanning techniques. It will help to establish the answer quickly. When scanning for your answer, make sure you are thinking about paraphrasing and synonyms.
- The answers appear in the same order as the questions.Also, check your spelling and remember that your answer should be grammatically correct.
Multiple-Choice Questions:
You will be given a reading passage followed by several questions based on the information in the paragraph in multiple-choice questions. Your task is to understand the question and compare it to the paragraph in order to select the best solution from the available possibilities.
- Before reading the passage, read the question and select the keywords. Check the keyword possibilities if the question statement is short on information.
- Then, using the keywords, read the passage to find the relevant information.
- To select the correct option, carefully read the relevant words and match them with each option.
- You will find several options with keywords that do not correspond to the information.
- Try opting for the elimination method mostly.
- Find the best option by matching the meaning rather than just the keywords.
Also check:
- Our Vanishing Night, Is there a psychologist in the building?, Have Teenagers Always Existed? Reading Answers
- 101 IELTS Academic Reading Past Test Papers with Answers PDF Download
- Working in the movies, Complementary and alternative medicine, The cloud messenger Reading Answers | IELTSMaterial.com
- 20 Best IELTS Preparation Books for Self Study 2023
- Top 10 IELTS Online Coaching Institutes | Academic & General 2023
Practice IELTS Reading based on question types
Start Preparing for IELTS: Get Your 10-Day Study Plan Today!
Explore other IELTS Articles
Kasturika Samanta
Kasturika Samanta
Kasturika Samanta
Recent Articles
Haniya Yashfeen
Haniya Yashfeen
Haniya Yashfeen
Raajdeep Saha
Post your Comments