In broad terms the argument for raising the adult and youth statutory minimum wage rates is that it would increase the incomes of low-wage employees and produce a fairer distribution of income. People higher up the wage scale may also enjoy smaller wage gains as a consequence of increased demand for substitutes for low-productivity labour. However, if minimum wages inflict losses on others in society, for instance by denying a job to low-productivity workers, then raising minimum wages may not be consistent with the objective of greater equity and improvement in overall welfare in society. A further consideration in assessing the merits of raising minimum wages is whether there are other policy instruments better suited to improving the welfare of low-wage employees.