If you change slightly the economic assumption and go from a completely competitive labor market (where workers get paid the marginal revenue productivity) to a monopsony labor market (there is only one employer), then the minimum wage can increase employment and wages. https://open.lib.umn.edu/principleseconomics/chapter/14-2-mo...
A monopsony labor market is highly unlikely to happen, but something similar can be said of a highly competitive labor market.
A monopsony labor market is highly unlikely to happen, but something similar can be said of a highly competitive labor market.