A reduction in the minimum wage will tend to cause which of the following?

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The Minimum Wage and Employment: Evidence of which causal relationship? In the past few years, the United States has seen a great deal of debate about whether or not to increase the federal minimum wage. It is important to note that there are two different perspectives on this issue.

The first perspective argues that an increase in the minimum wage will lead to greater employment levels because it would mean more money for workers who need it most and they will be able to purchase goods with these wages, increasing demand for labor from employers. The second argument states that lower-skilled employees will just have their hours cut as employers try to minimize their costs, meaning less work opportunities overall.

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This article discusses both arguments in detail before giving our opinion on what we think the evidence is pointing to. In the past few years, the United States has seen a great deal of debate about whether or not to increase the federal minimum wage. It is important to note that there are two different perspectives on this issue.

The first perspective argues that an increase in the minimum wage will lead to greater employment levels because it would mean more money for workers who need it most and they will be able to purchase goods with these wages, increasing demand for labor from employers. The second argument states that lower-skilled employees will just have their hours cut as employers try to minimize their costs, meaning less work opportunities overall. 

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