A minimum wage is a convenient way for a left-of-center government to appear to be doing something about poverty. But Tories believe that would be harmful. The Conservatives have been trying to make the case against raising the minimum wage. International evidence is a source of clues as to how a minimum wage would affect unskilled wages and employment. A survey of fast food restaurants in the US, which has a large and competitive service sector paying low wages, showed that over half had to raise wages to meet the minimum. But the survey contradicts the view that raising the minimum prices people out of jobs.
A minimum wage is a convenient way for a left-of-center government to appear to be doing something about poverty. But Tories believe that would be harmful. No-one knows whether or how a statutory minimum would affect unskilled wages and employment in the UK. International evidence is a source of clues as to how a minimum wage would affect unskilled wages and employment. A survey of fast food restaurants in the US, which has a large and competitive service sector paying low wages, showed that over half had to raise wages to meet the minimum. But the survey contradicts the view that raising the minimum prices people out of jobs.