Definition of Minimum Wage

Minimum Wage

An hourly wage rate set by the federal government below
which actual hourly wages cannot fall. This rate can be increased by state governments.

Institutionally Induced Unemployment

Unemployment due to institutional phenomena such as the degree of labor force unionization, the level of discrimination, and government policies such as unemployment insurance programs, minimum wages, or regulations on business.

Fair Labor Standards Act of 1938

A federal Act creating standards of overtime
pay, minimum wages, and payroll recordkeeping.

Walsh-Healey Public Contracts Act of 1936

A federal Act that forces government contractors to comply with the government’s minimum wage and hour rules.

Minimum price fluctuation

Smallest increment of price movement possible in trading a given contract. Also
called point or tick. The zero-beta portfolio with the least risk.

Minimum purchases

For mutual funds, the amount required to open a new account (minimum Initial
Purchase) or to deposit into an existing account (minimum Additional Purchase). These minimums may be
lowered for buyers participating in an automatic purchase plan

Minimum-variance frontier

Graph of the lowest possible portfolio variance that is attainable for a given
portfolio expected return.

Minimum-variance portfolio

The portfolio of risky assets with lowest variance.
Minority interest An outside ownership interest in a subsidiary that is consolidated with the parent for
financial reporting purposes.

Wage expense

The amount paid to employees for services rendered; synonymous with salary expense and payroll expense.

Efficiency Wage

wage that maximizes profits.

Real Wage

wage expressed in base-year dollars, calculated by dividing the money wage by a price index.

Wage Flexibility

Ease with which wages adjust in response to excess supply or demand.

Wage/Price Controls

An incomes policy in which wages and prices are constrained by law not to rise by more than a specified percentage.

Wage Stickiness

Resistance of wages to change.

Benefit Wage Ratio Method

The proportion of total taxable wages for laid off
employees during the measurement period divided by the total payroll during
the period. This calculation is used by states to determine the unemployment
contribution rate to charge employers.

Minimum inventory

An inventory item’s budgeted minimum inventory level.

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