Minimum wages increase on-the-job training for low-wage workers.
Minimum wages do not necessarily reduce on-the-job training for workers. In fact, they can actually increase training for some workers by encouraging firms to invest in training their unskilled employees. The study looked at the impact of minimum wage increases between 1987 and 1992 on low-wage workers and found no evidence that minimum wages decrease training. This goes against the traditional theory that minimum wages hinder training investments.