...increase in the minimum wage in ....? Suppose that the government of Haiti is planning to introduce a mandatory increase in the minimum wage in the clothing-manufacturing sector. Minimum wage workers are likely to support the proposed policy, while the clothing-manufacturing firms are likely to oppose the proposed policy. Using production and cost concepts, illustrate why clothing-manufacturing firms would oppose a rise in the minimum wage. Using income and substitution effects in an income-leisure choice model, illustrate why a minimum wage working woman who is looking to reduce her work hours to devote more time with her children would support this policy.