When companies' profits would otherwise be reduced by an increase in the minimum wage (a wage rate set by the government as the lowest that companies are allowed to pay), the companies often reduce the number of workers they employ
Yet a recent increase in the minimum wage did not result in job cutbacks in the fast-food industry, where most workers are paid the minimum wage
With respect to its response to increases in the minimum wage, the fast-food industry does not differ significantly from other industries that employ many workers at the minimum wage.