Final answer:
Opponents of the minimum wage argue that when it increases, the demand for labor decreases, potentially raising employment barriers and limiting economic mobility for low-skilled workers.
Step-by-step explanation:
According to the opponents of the minimum wage, when the minimum wage goes up, the quantity of labor demanded goes down. This perspective is informed by the economic principle that higher labor costs can lead to reduced hiring of unskilled workers. Studies suggest that a 10% increase in the minimum wage could decrease the hiring of unskilled workers by 1 to 2%.
Economists Walter Williams and Thomas Sowell have argued that higher minimum wages could actually increase employment barriers for lower-skilled workers and thereby limit economic mobility. The concern is that these workers will have fewer opportunities to learn on the job and gain valuable experience. However, past increases in the minimum wage have often been close to the equilibrium wage for low-skill labor, so the impact on job opportunities has historically been small, but a significant increase could have a more pronounced effect.