Policy Brief
07/03/2016
The right-wing and neo-liberals are claiming that minimum wage is a counter-productive measure as it increases labour costs, and therefore unemployment. A quick look to the academic literature shows that it is not necessarily the case. In most cases, minimum wage has almost no effect on employment. In some cases, the effect on employment is even positive. Furthermore, a minimum wage tends to decrease wage dispersion and therefore is an efficient tool to tackle inequalities. As other labour market institutions, it can be argued that a minimum wage is part of a predistribution policy, aiming at tackling pre-tax inequalities. The case for a European-wide minimum wage is strong as it minimizes the adverse effects of social dumping induced by pro-competitiveness policies conducted simultaneously by most European countries.
Find all related publications
Publications
Find all related Progressive Post
Progressive Post
Find all related events
Events
Past
23 - 24/04/2025
Washington DC, USA (Expert meeting)
11/04/2025
FEPS HQ, Brussels (Stakeholder meeting)
09/04/2025
Berlin, Germany
Find all related news
News
Find all related in the media
In the media
“It’s a mistake to think we can go back to the old normal after Trump”. Interview with FEPS Secretary General László Andor in Telex (HU), where he discusses the global trade tensions triggered by Trump-era tariffs, the shifting US-China dynamic, and the need for the EU to develop a new strategic approach in a permanently changed world order.
In an article in Delo, László Andor criticises Viktor Orbán government's economic policies, such as not allowing Hungary to join the euro area, which he believes would have helped curb inflation. He also criticises the government for blaming external enemies such as the President of the European Commission, to cover up its own failures.