Several factors inform the establishment of the wage floor
3) Thus, while there is generally no single measure with which the distributional effects of a policy can be assessed unambiguously, and while overall welfare effects are much more complicated, evaluating the impact of mandated wage floors on poverty is quite relevant to the policy debate.
Second, mandated wage floors may target low-income families ineffectively.
The extent to which discrimination is expressed by refusals to hire because of wage floors
cannot be predicted a priori because it depends on worker productivity, workers' reservation wage functions, the strength of employers' tastes for discrimination, and the prevalence and structure of wage floors
Even worse are proposals to establish wage floors
for high-skilled immigrants based on prevailing domestic wages to ensure that high-skill visas are not used to undercut American workers.