Actually labor is a commodity and is directly influenced by the supply and demand of laborers.  Anyone working in the private sector knows that a raise in pay is impossible if there are 10 job applications for his job setting in his bosses drawer.  This is why developing skills and knowledge increases a person's chances of advancement.  The more valuable you are to a business the more you can demand in compensation.  

The high unemployment of today's teen population is directly attributable to the minimum wage.