An increase in the minimum wage is likely to:

Question

Quizplus · Accepted Answer

Increasing the minimum wage will increase labor costs for businesses, which may lead to reducing the number of low-skill workers they employ. This creates unemployment among low-skill workers who can be easily replaced. However, increasing the minimum wage may also raise the income of labor by increasing the wages of some workers who remain employed. On-the-job training opportunities may not be affected by an increase in the minimum wage.

An Increase in the Minimum Wage Is Likely To