Final answer:
Increasing the minimum wage can have both positive and negative effects on low-skilled workers. While some may benefit from higher wages, others may experience job loss or reduced work hours.
Step-by-step explanation:
Minimum wage laws do not necessarily make all low-skilled workers 'better off.' While increasing the minimum wage may benefit some low-skilled workers by providing them with higher wages, it can also have negative consequences. The law of demand states that when the required wage increases, the amount of low-skill employment will decrease either in terms of employees or work hours. This means that some low-skilled workers may lose their jobs or see their hours reduced as a result of the higher minimum wage. Additionally, businesses may choose to automate tasks or outsource labor to lower-wage areas to stay profitable, further impacting low-skill employment.