In some cases, where a particular worker's DMVP is slightly below the legislated minimum (perhaps at $8.40, for example) and where that productivity is expected to increase to at least $8.50 in the near future, the employer may find it beneficial to retain the worker, thus economizing on the transaction costs associated with dismissing a worker and later rehiring that worker or a replacement. Such instances, obviously, are a short-term effect; in the long run, minimum-wage laws do not enable any worker to receive pay exceeding his or her DMVP.

Some of the reduction in employment may be realized by cutbacks in the number of weekly hours per job (e. g., from full-time to part-time), rather than by a loss of jobs. Because each job carries certain fixed costs (such as costs associated with hiring, accounting, and labor-law compliance), however, it is usually more economical for employers to hire fewer workers.