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# Evaluate the economic benefits of government intervention in labour markets
- URL: https://www.a-level-economics-tutor.com/evaluate-the-economic-benefits-of-government-intervention-in-labour-markets/
- Published: 2026-05-19T13:36:49.000Z
- Updated: 2026-05-19T13:36:49.000Z
- Author: Jaisul Naik
- Tags: IAL 20 mark question

### Edexcel International A-Level Economics Unit 3 October 2024

In 2023 the Government of Mexico intervened in the country’s labour market by: 

- increasing the daily minimum wage by 20% to 207.44 pesos
- setting a maximum of 48 hours per week for a full‑time employee.

**Evaluate the economic benefits of government intervention in labour markets.** Illustrate your answer with an appropriate diagram(s). (20 marks)

**Plan**

- **Paragraph 1**
  - **Argument: one advantage for workers is an increase in their pay**
  - **Diagram: minimum wage diagram**
  - **Evaluation: unemployment (excess supply); government failure**
- **Paragraph 2**
  - **Argument: one advantage for businesses is an increase in productivity**
  - **Diagram: fall in costs**
  - **Evaluation: increase in costs due to the higher minimum wages, even for low-skilled workers**

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