Final answer:
Increasing the minimum wage to $15 per hour may decrease employment for low-wage workers and increase demand for high-skilled labor. The impact of minimum wage increases on employment has historically been small, but a substantial raise could lead to more noticeable effects.
Step-by-step explanation:
When considering the effects of a rise in the minimum wage to $15 per hour, two outcomes are typically expected from an economic perspective. Firstly, employment of people previously earning less than $15 per hour may decrease. This is because employers might reduce hiring or cut hours to offset the cost increase associated with higher wages. Secondly, the demand for high-skilled workers, who are good substitutes for low-skilled workers, may increase. Employers may opt for more skilled labor if the cost of employing low-skilled workers becomes relatively more expensive due to the higher minimum wage.
Economic literature suggests that historical impacts of minimum wage increases on employment have been small because increases were often set close to the existing market equilibrium wage for low-skill labor. However, a significant increase, such as to $15 per hour, may have a more pronounced effect. It is important to note that the actual impact can vary and sometimes controvert expectations, depending on various factors such as the condition of the economy, labor demand elasticity, and the gap between the current market wage and the new minimum wage.