While low wages contribute to the dire economic straits of many poor and low-income families, the argument that a higher minimum wage is an effective way to improve their economic circumstances is not supported by the evidence.
First, a higher minimum wage discourages employers from using the very low-wage, low-skill workers that minimum wages are intended to help. A large body of evidence confirms that minimum wages reduce employment among low-wage, low-skill workers.
Second, minimum wages do a bad job of targeting poor and low-income families.
Minimum wage laws mandate high wages for low-wage workers rather than higher earnings for low-income families. Low-income families need help to overcome poverty.
Research for the US generally fails