Perverse incentive – Wikipedia, the free encyclopedia

Perverse incentive – Wikipedia, the free encyclopedia. I often see this in daily life. When good intentions are corrupted by clever people seeking to exploit what the law provides.

For example, today I saw this in action. I saw that the law of minimum wage wasn’t being observed. The woman shared that she worked for $60 for 9 hours. Less than $7 is not even minium wage. So having a minimum wage I believe encourages people to hire undocumented or illegal workers. That way they don’t have to pay a decent wage.