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Eugine_Nier comments on The Robots, AI, and Unemployment Anti-FAQ - Less Wrong
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Reality disagrees. The higher the minimum wage in a given country, the higher the labor force participation, - Ie, the percentage of the total population working goes up as the sums offered for their labor increases.
The effect you describe may be real, but if so it is extremely consistently swamped by the basic law of supply and demand. Offering more money for labor causes more people to work.
Forcing an employer to pay more money per worker doesn't magically mean the employer can employ more workers, it simply means he has to pay more for however many workers he would have hired anyway. Furthermore, as I mentioned here, having to pay more for each worker is going to encourage the employer to look for ways to reduce his need for labor.