A minimum wage law may cause unemployment among low-skill workers.

Question

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When a minimum wage law is implemented, employers are required to pay their employees a minimum wage regardless of the employee's skill level or the value of their work. This can result in some employers being unable to afford to pay their workers, causing them to lay off employees or reduce hiring, especially among low-skill workers who are often the easiest to replace or do without, potentially leading to unemployment.

A Minimum Wage Law May Cause Unemployment Among Low-Skill Workers