THE IMPACT OF MINIMUM WAGE INCREASE ON UNEMPLOYMENT

The article analyzes the impact of minimum wage increase on unemployment taking into account theoretical concepts and empirical data. Possible mechanisms of impact on the labor market are considered, including the crowding-out effect, reduced demand for low-skilled labor, as well as arguments in favor of a positive impact through increased consumer demand and reduced labor turnover. Regional differences in the effects of minimum wage increase in developed and developing countries are analyzed, as well as the role of productivity levels and labor market flexibility. Alternative regulatory strategies are discussed, including tax incentives, employment subsidies, and a differentiated approach to the minimum wage. A conclusion is made about the need for a balance between protecting workers and maintaining labor market stability.