Minimum wage is a poor way to reduce inequality and boost incomes for the poor. When I had to
do my finance assignment I realized EITC and direct cash transfers is far preferable, especially since it is a fairly simple mechanism to set up and would not distort the labor market.
One problem though! It is politically impossible, thanks in large part to the type of work organizations like the American Enterprise Institute undertake. EITC and cash transfers are seen as welfare to undeserving losers. To boost payments, taxes would have to go up on high-income earners, another impossibility.