A minimum wage is referred to as the low amount of wage that is paid to a worker per hour made by federal law.
Explanation:
If there is rise in the informal sector wage due to increase in the minimum wage , it will help in reducing poverty. If the low income group workers lose their work and also cannot find any work due to increase in minimum wage , social safety nets can protect the low income group people against poverty.
If there is increase in federal minimum wage it will reduce consumer spending as well as help in the growth of the economy. It will also increase the productivity as well as reduce employee turnover. It will also help in the overall growth of the economy and also increase the consumer demand.
