lowering minimum wage by half, effect on population of Puerto Rico I am reading about a new bill to lower the minimum wage in Puerto Rico from \$7.25 to \$4.25 per hour.  This comes at a time, when both the New York and California have chosen to raise their minimum wages from \$9/hr to \$15/hr. 

Are there any theories of how this affects work in a population?

Have any economists chimed in on the topic of minimum wage in general in general?  Can any of it be used to predict what will happen to PR?



Why might policy makers feel a decrease is warranted in one situation while an increase is warranted in another?
Typically, what happens when a minimum wage is relaxed is that a plethora of jobs that were illegal under the previous doctrine become available on the market for workers.

The common metaphor used by its supporters for describing the minimum wage is that a minimum wage is a "price floor" under which wages are not permitted to fall, ostensibly to protect workers.

The accurate metaphor for describing the minimum wage is a price hurdle which each person's productivity must clear in order to sell your product (i.e. your labor)  If your productivity is not valued by a buyer at a higher rate than the strictures placed upon it by legislation, it is illegal for you to have that job.

All other things held equal, reducing the minimum wage will create options for suppliers of cheap labor to actually have their product clear the market rather than having it denied by the State.