None Provided3

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…that a minimum wage reduces the quantity of labor demanded, increases the quantity of labor supplied, and creates a market surplus. Because the federal minimum had not been raised for 5 years the 50 cents per hour hike in October 1996 caused few job losses. According to Federal Reserve estimates, the 1997 wage hike may have reduced employment growth by only 100,000 to 200,000 jobs. However, the further minimum wage rises above the markets equilibrium wage, the greater the job loss.