medium · SAT Reading & Writing
A labor economist hypothesized that increasing the minimum wage leads to a significant reduction in employee turnover. He argued that higher wages increase job satisfaction and the 'cost' of losing a job, making employees more likely to remain with their current employer.
Which finding, if true, would most directly support the researcher's hypothesis?
- The minimum wage was first established in the United States as part of the Fair Labor Standards Act of 1938 to protect workers' rights.
- Surveys of low-wage workers indicate that 'salary' is consistently ranked as the most important factor in their overall happiness with their current position.
- Many small business owners reported that they had to reduce their total number of employees to compensate for the higher mandatory wage costs.
- Retail chains in states that raised starting pay saw a twenty percent drop in resignations over the next eighteen months compared to other states.
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