What is an example of a market driven minimum wage?

A market-driven minimum wage is one that adjusts based on supply and demand dynamics within a specific labor market. For example, in a region experiencing a labor shortage in low-wage sectors, employers may voluntarily raise wages to attract workers, effectively creating a higher market-driven minimum wage. This can happen in industries like hospitality or agriculture, where competition for labor leads to increased pay rates, reflecting the market's influence rather than a mandated government rate.