This is my first code on Python
**lETS CONSIDER TWO SCENARIOS **
Base Minimum Wage:
The rate at which the local currency can be exchanged for another currency, often used to convert wages into a common unit for comparison. Inflation Rate:
The percentage increase in the general price level of goods and services over time, impacting the purchasing power of a currency. Purchasing Power Ratio:
A measure of how much a currency can buy in terms of goods and services. It reflects the relative value of money in different regions.
Cost of Living:
The amount of money needed to maintain a basic standard of living, including expenses such as housing, food, transportation, and healthcare.
Productivity Growth:
Changes in the efficiency and output of workers, which can influence decisions about adjusting the minimum wage.
Labor Market Conditions:
Factors such as unemployment rates and demand for labor, which affect the overall context for minimum wage considerations.
Social Equity:
The goal of reducing income inequality and ensuring that the minimum wage provides a decent standard of living for workers.
Regional Disparities:
Differences in the cost of living and economic conditions across different regions, which may necessitate regional variations in minimum wage levels.
International Comparisons:
Comparing minimum wages with those in other countries or regions to gain insights into what is considered reasonable and avoid undue disparities.
By considering these factors, governments can make informed decisions when setting or adjusting the minimum wage, taking into account economic, social, and labor market dynamics. The provided Python code reflects a basic implementation that allows for flexibility in incorporating these metrics into the calculation.
def calculate_minimum_wage(
base_minimum_wage,
exchange_rate,
inflation_rate,
purchasing_power_ratio=1,
productivity_growth=0,
unemployment_rate=0,
demand_for_labor=0,
social_equity_factor=1,
business_impact_factor=1,
regional_disparities_factor=1,
international_comparison_factor=1,
public_input_factor=1,
legislative_process_factor=1
):
"""
Calculate the minimum wage based on various economic and social factors.
Parameters:
- base_minimum_wage (float): The base minimum wage.
- exchange_rate (float): The exchange rate between the local currency and another currency.
- inflation_rate (float): The percentage increase in the general price level of goods and services.
- purchasing_power_ratio (float, optional): A measure of how much a currency can buy in terms of goods and services.
Defaults to 1 if not provided.
- productivity_growth (float): Changes in productivity over time.
- unemployment_rate (float): The unemployment rate in the labor market.
- demand_for_labor (float): The demand for labor in the labor market.
- social_equity_factor (float): A factor representing the government's commitment to social equity.
- business_impact_factor (float): A factor representing the impact of minimum wage increases on businesses.
- regional_disparities_factor (float): A factor accounting for regional economic variations.
- international_comparison_factor (float): A factor considering international comparisons.
- public_input_factor (float): A factor representing the importance of public input in minimum wage decisions.
- legislative_process_factor (float): A factor representing the influence of the legislative process in minimum wage decisions.
Returns:
- float: The calculated minimum wage.
"""
# Combine factors into an overall adjustment factor
adjustment_factor = (
(1 + inflation_rate) / exchange_rate * purchasing_power_ratio *
(1 + productivity_growth) * (1 - unemployment_rate) * (1 + demand_for_labor) *
social_equity_factor * business_impact_factor * regional_disparities_factor *
international_comparison_factor * public_input_factor * legislative_process_factor
)
minimum_wage = base_minimum_wage * adjustment_factor
return minimum_wage
# Example usage with some assumed factor values:
base_minimum_wage = 17002 # Set your base minimum wage
exchange_rate = 29.5 # Set the exchange rate
inflation_rate = 0.036 # Set the inflation rate (expressed as a decimal)
result = calculate_minimum_wage(
base_minimum_wage, exchange_rate, inflation_rate,
purchasing_power_ratio=0.85,
productivity_growth=0.02,
unemployment_rate=0.05,
demand_for_labor=0.1,
social_equity_factor=1.2,
business_impact_factor=0.9,
regional_disparities_factor=1.1,
international_comparison_factor=1.05,
public_input_factor=1.1,
legislative_process_factor=1.05
)
print(f"The calculated minimum wage is: {result}")