Core Insights - The federal minimum wage in the U.S. has remained at $7.25 per hour since 2009, while some states have set higher minimum wages, such as Washington at $16.66 per hour [4][11]. Group 1: Impact of Minimum Wage Increases - Raising the minimum wage can lead to an increase in the number of "good jobs," which are defined as jobs providing a middle-class living standard, good benefits, and career advancement opportunities [2][6]. - An analysis of Uruguay's minimum wage increase by 80% in 2005 showed a tripling of the minimum wage from 2004 to 2013, resulting in a significant decrease in wage inequality [2][10]. - The study indicated that minimum wage hikes compelled employers to raise wages for lower-income workers, thereby narrowing the wage gap between minimum and median wages [2][10]. Group 2: Employment Effects - Contrary to traditional economic theories, raising wages for lower-income workers did not result in job losses, challenging the notion that higher minimum wages lead to reduced employment due to increased labor costs [3][6]. - A 2023 study by the Congressional Budget Office (CBO) projected that raising the minimum wage to $17 per hour by 2029 could increase wages for 11.3 million workers, with an additional potential 12.4 million benefiting [7][11]. - However, the CBO also estimated that this increase could lead to a loss of approximately 230,000 jobs by 2027 and 1 million jobs by 2033 [8][11]. Group 3: Wage Gap Reduction - Setting a minimum wage of $12 could significantly reduce gender and racial wage gaps by 25% to 50% among workers at the 15th percentile of income and below [8]. - The findings from the NBER support the idea that minimum wage increases can improve job quality and reduce inequality, aligning with similar studies conducted in the U.S. [6][10].