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EU minimum wages: To what extent does ideology matter?

Author

Listed:
  • Francisco J. S‡nchez-VellvŽ
  • Manuel Le—n Navarro

Abstract

This paper estimates the importance of the political and ideological position of the ruling party in determining the minimum wage in the European Union Member States. To this end, a database that establishes the position of each government in each country and year is built. Using the panel data methodology, we conclude that the center-right governments tend to have lower relative minimum wages. The same result is found when the Chapel Hill Expert Survey policy indexes the are used. Ideology does not discriminate between conservative or liberal governments due to both of them setting minimum wages at similar levels, though lower than governments of social ideology.

Suggested Citation

  • Francisco J. S‡nchez-VellvŽ & Manuel Le—n Navarro, 2021. "EU minimum wages: To what extent does ideology matter?," Estudios de Economia, University of Chile, Department of Economics, vol. 48(1 Year 20), pages 35-57, June.
    • Handle: RePEc:udc:esteco:v:48:y:2021:i:1:p:35-57
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    File URL: https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/63748/67081
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    More about this item

    Keywords

    Politics; ideology; minimum wage; statutory wages.;
    All these keywords.

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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