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Statutory Minimum Wages in the EU: Institutional Settings and Macroeconomic Implications

Author

Listed:
  • Arpaia, Alfonso

    (European Commission)

  • Cardoso, Pedro

    (European Commission, Directorate Employment, Social Affairs and Inclusion)

  • Kiss, Aron

    (European Commission)

  • Van Herck, Kristine

    (European Commission, Directorate Employment, Social Affairs and Inclusion)

  • Vandeplas, Anneleen

    (European Commission, Directorate Employment, Social Affairs and Inclusion)

Abstract

This paper analyses some macroeconomic implications of the statutory minimum wage in the member states of the European Union and assesses how its institutional design influences these outcomes. First, the paper looks at the institutional dimensions of statutory minimum wage setting. On the basis of this information, an indicator of institutional stringency is built to characterise the degree of predictability of minimum wage setting. Second, it explores the impact of minimum wage changes on employment, prices, consumption, and poverty.

Suggested Citation

  • Arpaia, Alfonso & Cardoso, Pedro & Kiss, Aron & Van Herck, Kristine & Vandeplas, Anneleen, 2017. "Statutory Minimum Wages in the EU: Institutional Settings and Macroeconomic Implications," IZA Policy Papers 124, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izapps:pp124
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    References listed on IDEAS

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    Cited by:

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    2. Young Cheol Jung & Adian McFarlane & Anupam Das, 2021. "The effect of minimum wages on consumption in Canada," The Economic and Labour Relations Review, , vol. 32(1), pages 65-89, March.

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    More about this item

    Keywords

    minimum wage; statutory minimum wage; composite indicator; poverty; in-work poverty; European Union;
    All these keywords.

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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