Zitatform

Cova, Joshua (2023): Politicizing the minimum wage: A multilingual text analysis of minimum wages in European electoral manifestos. In: Journal of European Social Policy, Jg. 33, H. 4, S. 469-483. DOI:10.1177/09589287231199561

Abstract

"This article examines the determinants of the growing political salience of minimum wages in European party manifestos. By using multilingual quantitative text analysis, I show that the electoral salience of minimum wages has increased in the past decades. Although left-wing parties emphasize minimum wages more than right-wing parties, I find that the electoral salience of this policy follows a U-shaped relationship: right-wing populist parties dedicate greater attention to minimum wages than centre-right parties do. A sentiment analysis finds that compared to other policies designed to supplement the income of low-wage workers, such as strengthening collective bargaining institutions and in-work benefits/wage subsidies, there do not seem to be specific party-political characteristics, which determine the sentiment with which discussions on minimum wages are framed." (Author's abstract, IAB-Doku) ((en))

Zitatform

Dickens, Richard (2023): How are minimum wages set? (IZA world of labor 211), Bonn, 11 S. DOI:10.15185/izawol.211.v2

Abstract

"The minimum wage has never been as high on the political agenda as it is today, with politicians in Germany, the UK, the US, and other OECD countries implementing substantial increases in the rate. One reason for the rising interest is the growing consensus among economists and policymakers that minimum wages, set at the right level, may help low paid workers without harming employment prospects. But how should countries set their minimum wage rate? The processes that countries use to set their minimum wage rate and structure differ greatly, as do the methods for adjusting it. The different approaches have merits and shortcomings." (Author's abstract, IAB-Doku) ((en))

Zitatform

Filauro, Stefano, Klaus Grünberger & Edlira Narazani (2023): The Impact of Minimum Wages on Income Inequality in the EU. (JRC working papers on taxation and structural reforms 2023,04), Seville, 33 S.

Abstract

"A number of studies documents that minimum wage policies have the potential to reduce income inequality. The recently adopted EU Commission's proposal for a Directive on adequate minimum wages was supported by a detailed analysis of the social impacts of hypothetical minimum wage levels in countries with a statutory minimum wage. This paper extends these country-level analyses by exploring the impact of minimum wage policies on EU-level income inequality. To our knowledge, this is the first study that uses a microsimulation model such as EUROMOD to assess the impact of EU-promoted policies on the distribution of income in the EU, beyond their national effects. Assuming no employment effects, static simulation results show that a hypothetical minimum wage corresponding to 60% of the national median wage would bring about a small but significant reduction in EU-level disposable income inequality (by 0.75% in 2019 as measured through the Gini index). This result stems primarily from a reduction in the within-country component of income inequality as the effect on inequality between countries is rather muted. The reduction in EU-level income inequality is the highest in disposable incomes, but some reduction is detectable also in market incomes. In turn, the withdrawal of social benefits because of higher minimum wages seems to neutralise part of this inequality reduction." (Author's abstract, IAB-Doku) ((en))

Zitatform

Haapanala, Henri, Ive Marx & Zachary Parolin (2023): Decent wage floors in Europe: Does the minimum wage directive get it right? In: Journal of European Social Policy, Jg. 33, H. 4, S. 421-435. DOI:10.1177/09589287231176977

Abstract

"The Directive on Adequate Minimum Wages represents a watershed initiative adding substance to the EU’s social dimension. It contains two ambitious objectives: establishing the minimum level of statutory minimum wages at 60% of the gross median wage, and increasing collective bargaining coverage (CBC) to at least 80% of workers. In this article, we assess how statutory minimum wages and collective bargaining coverage are associated with the likelihood of low pay. Using a time series cross-section of EU-SILC for income years 2004–2019, we identify and assess the absolute and relative size of ‘effective wage floors’ for full-time employees in 30 countries. We specify multilevel, random effects within-between regression models to assess the individual and joint associations of SMW and collective bargaining coverage with wage floors. Our results indicate that SMWs and CBC both have distinct roles in establishing the effective wage floor. First, higher collective bargaining coverage is on average associated with a lower share of workers earning below 60% gross median wages. Second, higher SMWs are strongly associated with higher effective wage floors. Third, both collective bargaining coverage and union density are strongly associated with higher wage floors." (Author's abstract, IAB-Doku) ((en))

Zitatform

Hamilton, Reg & Matt Nichol (2023): One Hundred Years of Dynamic Minimum Wage Regulation: Lessons from Australia, the United Kingdom and the United States. In: International Labour Review, Jg. 162, H. 3, S. 407-429. DOI:10.1111/ilr.12380

Abstract

"Since the first minimum wage legislation was introduced in Australia, the United Kingdom and the United States in the early 1900s, minimum wage regulation has attracted controversy. Opponents of minimum wage levels rely on market theory, while supporters acknowledge the role of markets in setting the price of labour but justify state intervention based on principles of equity and social good. This article examines how these two ideological positions influenced fixing what is both a crucial cost for business and underpinning of worker and family living standards, and whether effective wage fixing has resulted. Little comparative research exists on the origins, evolution and current systems of minimum wage regulation in the three countries and this article aims to address this gap in the literature." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

Zitatform

Juliana, Maria, Charry Camargo, Alessandra Crippa, Serena Drufuca, Flavia Pesce, Manuela Samek Lodovici, Elena Cottini, Bernardo Fanfani & Claudio Lucifora (2023): Minimum wages: Non-compliance and enforcement across EU Member State. Comparative report. (Eurofound research report / European Foundation for the Improvement of Living and Working Conditions), Dublin, 119 S. DOI:10.2806/474422

Abstract

"In the EU, non-compliance with statutory or negotiated minimum wages averages 6.93% or 1.3%, depending on the statistics used. The lowest national estimate is 0.01% in Belgium and the highest is 11.59% in Hungary. It mostly affects young workers, those on fixed-term or part-time contracts and those working for small companies. It is more common in services than in manufacturing, and is characterized by shorter working time. Member States monitor, enforce and promote compliance in similar ways, although with some differences. This report identifies hindering and enabling factors. Some countries focus on specific economic sectors, such as construction, domestic work, platform work, agriculture and meat processing. National authorities often enforce minimum wages indirectly by helping employers comply, raising workers’ awareness, and helping stakeholders increase cooperation and develop faster procedures. Combining these soft initiatives with tougher measures increases the effectiveness of inspectorates’ actions in enforcing compliance with minimum wages." (Author's abstract, IAB-Doku) ((en))

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Lübker, Malte & Thorsten Schulten (2023): WSI-Mindestlohnbericht 2023. Kaufkraftsicherung als zentrale Aufgabe in Zeiten hoher Inflation. In: WSI-Mitteilungen, Jg. 76, H. 2, S. 112-122. DOI:10.5771/0342-300X-2023-2-112

Abstract

"Der WSI-Mindestlohnbericht enthält neue Daten über Mindestlöhne aus insgesamt 38 Ländern in Europa und darüber hinaus. Die aktuelle Entwicklung der Mindestlöhne steht ganz im Zeichen der enorm hohen Inflationsraten. Während in der Hälfte der 22 EU-Staaten, die gesetzliche Mindestlöhne haben, die realen Mindestlöhne gesichert oder sogar erhöht werden konnten, reichten die Mindestlohnerhöhungen in den restlichen EU-Staaten nicht aus, um teilweise erhebliche Reallohnverluste zu vermeiden. Vor diesem Hintergrund sieht die im Oktober 2022 verabschiedete Europäische Mindestlohnrichtlinie die Kaufkraft als ein wesentliches Kriterium an, das bei der Festsetzung eines als angemessen geltenden Mindestlohns zu berücksichtigen ist. In einigen europäischen Ländern wie z. B. Belgien oder Frankreich ist die Reallohnsicherung der Mindestlöhne schon heute gesetzlich verankert und wird durch entsprechende Indexierungsklauseln gewährleistet. In Deutschland hat die Erhöhung des Mindestlohns auf 12 € den Beschäftigten zunächst einmal ein kräftiges Reallohnplus beschert. Für zukünftige Anpassungen steht jedoch auch hier die Reallohnsicherung auf der Tagesordnung." (Autorenreferat, IAB-Doku)

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Lübker, Malte & Thorsten Schulten (2023): WSI-Mindestlohnbericht 2023. Kaufkraftsicherung als zentrale Aufgabe in Zeiten hoher Inflation. (WSI-Report 82), Düsseldorf, 19 S.

Abstract

"Die rasant gestiegenen Verbraucherpreise belasten Beschäftigte mit niedrigen Einkommen in besonderem Maße. Deswegen ist es derzeit eine vordringliche Aufgabe der Lohnpolitik, die Kaufkraft der Mindestlöhne zu sichern. Wie der diesjährige WSI-Mindestlohnbericht zeigt, ist dies trotz einer deutlichen Anhebung der nominalen Mindestlöhne zum 1. Januar 2023 nur in rund der Hälfte der EU-Länder gelungen. Vor diesem Hintergrund verfolgt die neue Europäische Mindestlohnrichtlinie das Ziel, allen Beschäftigten einen angemessenen Mindestlohn zu garantieren. Das Kriterium der Angemessenheit beinhaltet, dass die EU-Mitgliedsländer künftig bei der Anpassung der Mindestlöhne deren jeweilige Kaufkraft, also die zugrunde liegenden Lebenshaltungskosten, mitberücksichtigen müssen. Dies stellt auch in Deutschland die hierzulande zuständige Mindestlohnkommission vor neuen Handlungsbedarf." (Autorenreferat, IAB-Doku)

Zitatform

Muñoz, Mathilde (2023): International Trade Responses to Labor Market Regulations. (NBER working paper / National Bureau of Economic Research 31876), Cambridge, Mass, 61 S.

Abstract

"This paper studies how differences in labor market regulations shape countries' comparative advantage in the cross-border provision of labor-intensive services, using administrative data in Europe for the last two decades. I exploit exogenous variation in labor taxes and minimum wages faced by exporting firms engaged in a large European trade program. Firms from different countries compete to supply the same physical service in the same location but their employees are subject to different payroll taxes and minimum wages. These rules varied across countries, sectors, and over time. Reduced-form country case-studies as well as model-implied gravity estimates show evidence of large trade responses to lower labor taxes and minimum wages, with an elasticity that is around one. The Bolkestein directive, by exempting foreign firms from all labor regulations in the destination country, would have doubled exports of physical services from Eastern European countries, rationalizing the wave of protests in high-wage countries that led to the withdrawal of the proposal." (Author's abstract, IAB-Doku) ((en))

Zitatform

Pedersen, Siri Hansen & Georg Picot (2023): Regulating low wages: cross-national policy variation and outcomes. In: Socio-economic review, Jg. 21, H. 4, S. 2093-2116. DOI:10.1093/ser/mwad019

Abstract

"This article provides a comparative analysis of three central policies to regulate low wages: statutory minimum wages, state support for collective bargaining and topping up low wages with public transfers (in-work benefits). We map the variation of these policies across 33 OECD countries and analyze the incidence of low-wage employment they are associated with. We find three approaches to regulating low wages. In the first, 'wage scale protection', states put most emphasis on supporting collective bargaining. In the second, 'bare minimum', there is not much else than the statutory minimum wage. In the third, 'state pay', the statutory minimum wage is supplemented by sizeable public financial support for low earners. When analyzing policy outcomes, 'wage scale protection' is associated with least low-wage employment. For 'bare minimum', much depends on the level of the statutory minimum wage. Although 'state pay' props up workers' disposable income, many workers receive low gross pay." (Author's abstract, IAB-Doku) ((en))

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Europäische Kommission. Generaldirektion Beschäftigung, Soziales und Integration (2023): Labor Market and Wage Developments in Europe 2023. (Labour market and wage developments in Europe : annual review), Luxembourg, 138 S.

Abstract

"The Labor Market and Wage Developments in Europe report analyses the labor market from a macroeconomic perspective. This year’s edition discusses the situation and prospects for the EU labor market, which has continued to perform well notwithstanding the economic slowdown and an economic context characterised by persistent uncertainty. The report also reviews recent wage and labor cost developments in the EU and its Member States in the current high-inflation environment. While wage growth has been robust, it has not been sufficient to compensate for the high inflation. At the same time, statutory minimum wage policies have contributed to protecting the purchasing power of minimum-wage earners. Finally, the report examines the developments in working time across the EU, assessing how individual preferences have evolved following the COVID-19 pandemic and discussing the effects of working time policies on workers’ wellbeing and on the broader economic context." (Author's abstract, IAB-Doku) ((en))

Abstract

"This study explores the importance of financial incentives for the labor market integration of minimum income recipients compared to other factors, via three distinct strands of analysis: Benefit adequacy and work incentives: The study examines the potential trade-off in the design of minimum income schemes between ensuring adequate income support and providing sufficient incentive for recipients to look for employment. To do so, it calculates for each EU Member State the “participation tax rate” (PTR), which measures the net income lost by someone moving from receiving minimum income benefits into work relative to the income gained. It then assesses the actual importance of high PTRs on work incentives by analysing the empirical evidence available. Gradual phasing out of benefits: The study examines how minimum income schemes make use of tapering to ensure a financial incentive for recipients to take up (more) work. To do so, it takes inventory of the tapering arrangements currently applicable in Member States and examines how these are implemented. It also identifies recent reforms to tapering mechanisms, case studies on six recent reforms, and uses these to reflect on their impact. Active labor market policies for minimum income recipients: The study examines the use of active labour market policies and what types of policy may be most effective in enabling transition for minimum income benefit recipients. To do so, it performs a quantitative analysis of the data from the EU Labor Market Policy database and a qualitative analysis of evaluations of programs co-funded by the European Social Fund. In both cases long-term unemployed were used as a proxy for minimum income benefit recipients." (Author's abstract, IAB-Doku) ((en))

Zitatform

Adam, Georg (2022): Die Entwicklung der gesetzlichen Mindestlohnsetzung in der EU und ihre Bedeutung für die Gewerkschaften. In: Wirtschaft und Gesellschaft, Jg. 48, H. 3, S. 365-406.

Abstract

"In der Europäischen Union bestehen auf nationaler Ebene sehr unterschiedliche Mindestlohnregime. Dieser Beitrag fokussiert auf den internationalen Vergleich von Mindestlohnregimen, wobei besonderes Augenmerk auf die Modi der gesetzlichen Festlegung von Mindestlöhnen gelegt wird. Darüber hinaus analysiert der Beitrag – ausgehend vom Konzept der Governance – den wechselseitigen Zusammenhang zwischen der gesetzlichen Mindestlohnsetzung und der Kollektivvertragspolitik. Drittens beleuchtet der Beitrag auf Grundlage des sogenannten Machtressourcenansatzes den Zusammenhang zwischen der Mindestlohnpolitik und den unterschiedlichen Dimensionen gewerkschaftlicher Macht. Insbesondere wird untersucht, unter welchen Bedingungen der gesetzliche Mindestlohn als institutionelle Machtressource der Gewerkschaften fungieren kann." (Autorenreferat, IAB-Doku)

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Afonso, António, João Tovar Jalles & Zoe Venter (2022): Minimum Wage and Collective Bargaining Reforms: A Narrative Database for Advance Economies. (CESifo working paper 9692), München, 21 S.

Abstract

"This paper presents and describes a new database of major minimum wage and collective bargaining reforms covering 26 advanced economies over the period 1970-2020. The main advantage of this dataset is the precise identification of the nature and date of major reforms, which is valuable in many empirical applications. Based on the dataset, major changes in minimum wages have been more frequent than in collective bargaining in the last decades, and the majority of these were implemented during the 1980s and 1990s. In our empirical application, we find that minimum wage reforms have a medium-run positive impact on labor productivity and they lead to a fall in the unemployment rate. Collective bargaining reforms do not seem to affect either productivity or capital formation but they have a clear medium-term effect on the labor market. Moreover, collective bargaining reforms are more sensitivity to the prevailing business cycle conditions at the time of the reform (vis-à-vis minimum wage reforms)." (Author's abstract, IAB-Doku) ((en))

Zitatform

Grünberger, Klaus, Edlira Narazani, Stefano Filauro & Áron Kiss (2022): Social and fiscal impacts of statutory minimum wages in EU countries. A microsimulation analysis with EUROMOD. In: IZA Journal of Labor Policy, Jg. 12, H. 1. DOI:10.2478/izajolp-2022-0009

Abstract

"This paper analyzes the effects of hypothetical MW (HMW) increases on social and fiscal outcomes in 21 European Union (EU) countries with a statutory national MW (NMW) based on a microsimulation approach using EUROMOD. The methodological challenges related to the use of available EU household survey data are described, along with the choices made to address these challenges. The paper assesses hypothetical scenarios in which countries with a statutory NMW increase their minimum wage (MW) to various reference values, set in relation to the gross national median and average wage. The model simulations suggest that MW increases can significantly reduce in-work poverty, wage inequality, and the gender pay gap, while generally improving the public budget balance. The implied wage increases for the beneficiaries are substantial, while the implied increases in the aggregate wage bill are generally modest. Extensions explore possible effects on employment and labor supply at the intensive margin." (Author's abstract, IAB-Doku) ((en))

Zitatform

Haapanala, Henri, Ive Marx & Zachary Parolin (2022): Decent Wage Floors in Europe: Does the Minimum Wage Directive Get It Right? (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 15660), Bonn, 45 S.

Abstract

"The Directive on Adequate Minimum Wages represents a watershed initiative adding substance to the EU's social dimension. It contains two ambitious objectives: establishing the minimum level of statutory minimum wages (SMWs) at 60% of the gross median wage, and increasing collective bargaining coverage (CBC) to at least 80% of workers. In this paper, we assess how minimum wages and collective bargaining affect low pay. Using a time series cross-section of EU-SILC for income years 2004-2019, we identify and assess the absolute and relative size of 'effective wage floors' for full-time employees in 30 countries. We specify multilevel, random effects within-between (REWB) regression models to assess the individual and joint effects of SMW and CBC on wage floors. Our results indicate that SMW and CBC both have distinct roles to play in establishing the effective wage floor. First, countries with a statutory minimum wage have a lower share of workers earning below 60% gross median wage than countries without one. Furthermore, higher rates of CBC are essential for pushing down the share of workers on below-decent pay. Countries without a SMW but with CBC above the 80% target value have roughly the same proportion of below-decent pay as SMW countries with CBC less than 30-40%. However, at higher rates of CBC, SMW countries are predicted to overtake non-SMW countries on this measure. A hypothetical SMW country meeting the target value of 80% CBC is predicted to have less than 6.5% of full-time employees earning below-decent pay." (Author's abstract, IAB-Doku) ((en))

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Lübker, Malte & Thorsten Schulten (2022): WSI-Mindestlohnbericht 2022. Aufbruch zu einer neuen Mindestlohnpolitik in Deutschland und Europa. (WSI-Report 71), Düsseldorf, 20 S.

Abstract

"Nicht nur in Deutschland steht der Mindestlohn derzeit weit oben auf der politischen Agenda – zahlreiche europäische Länder sind auf dem Weg zu strukturell höheren Mindestlöhnen. Als Richtwert für ein angemessenes Mindestlohnniveau gilt dabei die Schwelle von 60% des Medianlohns, die auch im Kontext der Europäischen Mindestlohninitiative diskutiert wird. Der diesjährige WSI-Mindestlohnbericht zeigt, dass Mindestlöhne in dieser Höhe umsetzbar sind, wenn hierfür eine klare politische Richtungsentscheidung getroffen wird. Deutschland würde sich mit der geplanten Anhebung des Mindestlohns auf 12 € diesem Richtwert annähern und damit innerhalb Europas vom bisherigen Nachzügler bei Mindestlohnerhöhungen zum Vorreiter in der Mindestlohnpolitik werden." (Autorenreferat, IAB-Doku)

Zitatform

Manning, Alan (2022): Der flüchtige Beschäftigungseffekt des Mindestlohns. In: A. Heise & T. Pusch (Hrsg.) (2022): Mindestlöhne – Szenen einer Wissenschaft, S. 137-174.

Abstract

"Mit der Vielzahl von Papieren, die versuchen, den Effekt von Mindestlöhnen auf die Beschäftigung zu schätzen, steigt die Gefahr, den Blick auf die Frage nach dem 'Warum' zu verlieren. Insbesondere auf die Frage, warum es so schwer ist, negative Beschäftigungseffekte von Mindestlöhnen auszumachen. Vielleicht gibt es gewisse ökonomische Faktoren, die den kleinen und oftmals ambivalenten Effekt des Mindestlohns auf die Beschäftigung erklären? Oder vielleicht sind Arbeitsmärkte fundamental von anderen Märkten verschieden? Diese Anliegen sollen in diesem Beitrag diskutiert werden. Die Schlussfolgerung ist, dass der Beschäftigungseffekt des Mindestlohns schwer fassbar ist, aber auch, dass die Ökonomen hiervon nicht überrascht sein sollten, wenn man bedenkt, wie Arbeitsmärkte funktionieren, in denen Abweichungen vom vollständigen Wettbewerb viel größer sind als in vielen anderen Märkten. Tatsächlich mag es an der Zeit sein, dass die Forschung einen Schritt vorwärts macht und sich die Frage stellt, wie weit der Mindestlohn erhöht werden kann, ohne signifikante Beschäftigungseffekte auszulösen." (Textauszug, IAB-Doku)

Zitatform

Natali, David & Andrea Terlizzi (2022): Minimum income across all ages: a focus on elderly people. (European Trade Union Institute. Working paper 2022,17), Brussels, 40 S.

Abstract

"The risk of poverty is a key issue for European countries. Irrespective of the uneven evolution of that risk – a sharp increase in the aftermath of the Great Recession of 2008 followed by an overall decrease in the past few years – people at risk of poverty represent a key target of social protection and social assistance schemes across the EU Member States and a persistent challenge for policymakers. In response to the call for tender proposed by the European Trade Union Institute (ETUI) and the European Trade Union Confederation (ETUC), this paper explores some of the many dimensions of old-age poverty and considers the possibility of addressing at least some of these dimensions by means of a guaranteed minimum income for retired persons, including one that could be introduced or coordinated at European level. The paper is organised in three parts. Chapter 1 collects information on poverty risks across Europe and age groups (e.g. between working-age and elderly populations) to assess how people of both working and retirement age are affected by poverty. Some preliminary data shed light on the impact of the pandemic. Chapter 2 assesses minimum pension schemes across Europe (comparing these schemes for the elderly with minimum income schemes for those of working age), with some insights about their efficacy. We also identify the standards that should be kept in account for designing adequate minimum income policies after retirement. Chapter 3 summarises the recent debate at the EU level and suggests policy strategies to provide effective minimum income protection for elderly people to lead a life in dignity. The paper ends with some preliminary conclusions and remarks." (Author's abstract, IAB-Doku) ((en))

Zitatform

Welz, Christian & Maria Cantero (2022): Regulating minimum wages and other forms of pay for the self-employed. (Eurofound research report / European Foundation for the Improvement of Living and Working Conditions), Dublin, 67 S. DOI:10.2806/426747

Abstract

"This report is carried out in the context of the three-year pilot project (2021–2023), ‘Role of the minimum wage in establishing the Universal Labour Guarantee’, mandated to Eurofound by the European Commission. Its focus is module 3 of the project, investigating minimum wages and other forms of pay for the self-employed. Out of concern for the challenging conditions faced by certain groups of self-employed workers, some Member States have established or are in discussions about proposing some statutory forms of minimum pay for selected categories of the self-employed. The main objective of the report is to understand how minimum wages, wage rates, tariffs, fees and other forms of pay could be fixed for specific jobs or professions in sectors having a high level of ‘vulnerable’ workers, as well as ‘concealed’ self-employed. While the majority of Member States allow trade union representation, the right to collective bargaining for the selfemployed is much more limited. Only a small number of Member States provide examples of collectively agreed minimum wages or other forms of pay for the self-employed." (Author's abstract, IAB-Doku) ((en))