Low minimum wage ignorance leads to lower wages and job loss.
Minimum wage laws can have different effects on wages and employment depending on whether workers know about them or not. If workers are unaware of the minimum wage, many employers may lower wages to the minimum level. This can lead to lower average wages and reduced employment levels, especially when the minimum wage is low. The level of information workers have about minimum wage laws can significantly impact how effective these laws are in increasing wages and maintaining employment levels.