A
minimum wage is the lowest
remuneration that employers may legally pay to workers. Equivalently, it is the
price floor below which workers may not sell their labor. Although
minimum wage laws are in effect in many jurisdictions, differences of opinion exist about the benefits and drawbacks of a minimum wage. Supporters of the minimum wage say it increases the
standard of living of workers,
reduces poverty, reduces inequality, boosts morale and forces businesses to be more efficient. In contrast, opponents of the minimum wage say it increases poverty, increases unemployment (particularly among unskilled or inexperienced workers) and is damaging to businesses.