What impact do minimum wage increases have on income inequality?

What impact do minimum wage increases have on income inequality?

Minimum wage increases can help reduce income inequality by raising the earnings of low-wage workers, allowing them to have more disposable income.

Are there any studies that support this?

Yes, several studies indicate that raising the minimum wage can lead to a decrease in poverty rates and improve the overall income distribution.

What are the potential downsides of increasing the minimum wage?

Some potential downsides include job losses, increased prices for goods and services, and potential negative impacts on small businesses.

How do different countries handle minimum wage policies?

Countries vary widely in their minimum wage policies, with some having a national minimum wage while others allow regional variations.

What alternatives exist to raising the minimum wage?

Alternatives include improving access to education and training, implementing earned income tax credits, and enhancing social safety nets.