<Li> Is less effective than other methods (e.g. the Earned Income Tax Credit) at reducing poverty, and is more damaging to businesses than those other methods . </Li> <Li> Discourages further education among the poor by enticing people to enter the job market . </Li> <Li> Discriminates against, through pricing out, less qualified workers (including newcomers to the labor market, e.g. young workers) by keeping them from accumulating work experience and qualifications, hence potentially graduating to higher wages later . </Li> <Li> Slows growth in the creation of low - skilled jobs </Li>

States in the u.s. may mandate minimum wages above the federal level