Why would an increase in the minimum wage lead to less unemployment?
Background
In class this week we presented the traditional textbook explanation of the minimum wage. The minimum wage is a price floor that tends to increase unemployment by encouraging more workers to enter the labor force to compete for fewer jobs. Nevertheless, this theory has not been so easy to prove by looking at the data. Some studies, in fact, have proven it, but others have not. In fact, some studies have suggested an increase in the minimum wage could lead to less, not more, unemployment.
Discussion Question
How could a price floor such as the minimum wage lead to less, not more, unemployment? Again, please use models and concepts to answer the question