Supporters of the minimum wage claim it has these effects:

Increases the average living standard.

Creates incentive to work. (Contrast with welfare transfer payments.)

Does not have budget consequence on government. "Neither taxes nor public sector borrowing requirements rise." (Contrast with negative income taxes such as the EITC.)

Minimum wage is administratively simple; workers only need to report violations of wages less than minimum, minimizing a need for a large enforcement agency.

Stimulates consumption, by putting more money in the hands of low-income people who spend their entire paychecks.

Increases the work ethic of those who earn very little, as employers demand more return from the higher cost of hiring these employees.

Decreases the cost of government social welfare programs by increasing incomes for the lowest-paid.