VIDEO
Is Minimum Wage A Dead End?
Minimum wage policy is intended to increase earnings for low-wage workers and reduce poverty. Evidence from state-level increases, however, shows that businesses may respond by changing how many people they employ, how many hours they offer, whom they hire, and how much work they automate. Workers who remain employed may earn more per hour, but others may lose income or job opportunities, while many of those who benefit do not live in poor households. The Earned Income Tax Credit (EITC) directs support toward low-income working families without putting other workers’ jobs or hours at risk.