POLICY TIP SHEET: INCREASING THE MINIMUM WAGE DOES NOT REDUCE POVERTY

Here’s a Shocker

Increasing the Minimum Wage Does Not Reduce Poverty: 

In the past year, 21 states increased their minimum wage laws, and several more are considering similar proposals in the current session.

Before passing bills that would arbitrarily raise the minimum wage, policymakers should consider the serious consequences a minimum wage increase can have on employment rates and economic growth.

Proponents of these laws also argue minimum-wage laws protect workers from exploitation by employers and reduce poverty. Opponents cite evidence that increasing minimum-wage laws is not an effective way to address poverty and often has the opposite effect by creating barriers to entry for workers with less skills and education.

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