The Low-Wage Labor Market: Challenges and Opportunities for Economic Self-Sufficiency. Does the Minimum Wage Help or Hurt Low-Wage Workers? . Do Minimum Wages Reduce Employment Opportunities?


While economic theory predicts that higher minimum wages will lead to lower employment, findings from recent studies seem to be mixed.7  Overall, recent studies have found that minimum wages have negative effects on employment but the magnitudes have varied across studies. At the lower end, researchers have found that a 10 percent minimum wage hike would reduce employment by only 1 percent. At the high end, other researchers have found that the same hike would reduce employment by 10 percent.8  Moreover, other studies have concluded that minimum wages have no effect or a positive effect on employment.9