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Minimum wages across countries / Joop Adema... [et al.]

Adema, Joop, co-autor

IFO DICE Report . ISSN2511-7823 . Munich : IFO Institut, Vol. 16, no 4 (2018) , p. 55-63

Minimum wages are widespread nowadays. Their general aim is to ensure that workers are not paid below their marginal productivity (Eurofound 2018), which may happen if workers have little bargaining power. Hence, it is not surprising that some countries with strong social security and trade unions do not have a minimum wage, since unionisation strengthens the workers’ bargaining power. They have other options than to accept a low paid job and are thus less dependent on an institutionalised minimum wage level. However, if minimum wages exceed the productivity of the least productive workers, firms may not employ these workers. Hence, a minimum wage that is set on a relatively high level, can decrease the feasibility of employing workers who are not productive. This, in turn, leads to a reduction in the employment of these workers, and potentially to a decrease in competitiveness of the producers in the respective geographical area (Neumark and Wascher 2006)... [Da introd.]

política do emprego; mercado do trabalho; salário mínimo; análise comparativa

44 EMPREGO E TRABALHO

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