Editing Minimum wage (section)

===Impact of minimum wage on income inequality and poverty===
Minimum wage policies have been debated for their impact on income inequality and poverty levels. Proponents argue that raising the minimum wage can help reduce income disparities, enabling low-income workers to afford basic necessities and contribute to the overall economy. Higher minimum wages may also have a ripple effect, pushing up wages for those earning slightly above the minimum wage.<ref>{{cite journal|last=Card|first=David|title=Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania|journal=The American Economic Review|year=1994|volume=84|issue=4|pages=772–793|url=https://www.jstor.org/stable/2118030|publisher=American Economic Association|jstor=2118030}}</ref>

However, opponents contend that minimum wage increases can lead to job losses, particularly for low-skilled and entry-level workers, as businesses may be unable to afford higher labor costs and may respond by cutting jobs or hours.<ref>{{cite journal|last=Neumark|first=David|title=Minimum Wages and Employment: A Review of Evidence from the New Minimum Wage Research|journal=NBER Working Paper No. 12663|series=Working Paper Series |year=2006|publisher=National Bureau of Economic Research|doi=10.3386/w12663 |url=https://www.nber.org/papers/w12663}}</ref> They also argue that minimum wage increases may not effectively target those living in poverty, as many minimum wage earners are secondary earners in households with higher incomes.<ref>{{cite journal|last=MaCurdy|first=Thomas|title=How Effective Is the Minimum Wage at Supporting the Poor?|journal=Journal of Political Economy|year=2015|volume=123|issue=2|pages=497–545|url=https://www.journals.uchicago.edu/doi/abs/10.1086/679626|publisher=The University of Chicago Press|doi=10.1086/679626|s2cid=154665585 }}</ref> Some studies suggest that targeted income support programs, such as the Earned Income Tax Credit (EITC) in the United States, may be more effective in addressing poverty.<ref>{{cite journal|last=Hotz|first=V. Joseph|title=Examining the Effect of the Earned Income Tax Credit on the Labor Market Participation of Families on Welfare|journal=NBER Working Paper No. 11968|series=Working Paper Series |year=2006|publisher=National Bureau of Economic Research|doi=10.3386/w11968 |url=https://www.nber.org/papers/w11968}}</ref> The effectiveness of minimum wage policies in reducing income inequality and poverty remains a subject of ongoing debate and research.