Wharrgarbl. Economists frequently state this as a fact, with zero recourse to empirical analysis.
It's a theoretical statement based on microeconomic reasoning which itself has flawed assumptions (assumptions like "people make rational economic decisions" and "consumers and employees are well-informed about their options). The econ 101 supply and demand model is an extremely poor model of most real-world economic systems, employment included.
When it hits the real world and a standard of evidence, it doesn't hold up. The wealthiest countries in the world with the highest employment rates and the lowest poverty all have minimum wages. Implementation of minimum wage laws is highly correlated with improved standards of living among the poorest, and is not correlated with significant increases in unemployment. (Empirical studies show things like a 0.6% decrease in employment, and only among teenagers, for a 10% increase in the minimum wage.)
It's a theoretical statement based on microeconomic reasoning which itself has flawed assumptions (assumptions like "people make rational economic decisions" and "consumers and employees are well-informed about their options). The econ 101 supply and demand model is an extremely poor model of most real-world economic systems, employment included.
When it hits the real world and a standard of evidence, it doesn't hold up. The wealthiest countries in the world with the highest employment rates and the lowest poverty all have minimum wages. Implementation of minimum wage laws is highly correlated with improved standards of living among the poorest, and is not correlated with significant increases in unemployment. (Empirical studies show things like a 0.6% decrease in employment, and only among teenagers, for a 10% increase in the minimum wage.)