The minimum wage does not require any employee to be hired. It mandates, only, that if he is taken on, then a lower bound on wages is applied. It is thus an unemployment law. It implies that low skilled workers will not get jobs. Suppose a worker’s productivity is $7 per hour, while the law requires a payment of $10. If a firm takes on such a person, it will lose $3 per hour.
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By Liberty Report Staff
