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
If, in any industry, an increase in the minimum wage leads to the elimination of many jobs that pay the minimum wage, then higher-paying supervisory positions will also be eliminated in that industry.