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[IWS] Dublin Foundation: MINIMUM WAGE DRAFT DOCUMENTS--A coordinated EU minimum wage policy? [21 October 2013]
IWS Documented News Service
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
European Foundation for the Improvement of Living and Working Conditions (Dublin Foundation)
DRAFT DOCUMENTS ON MINIMUM WAGE [21 October 2013]
A coordinated EU minimum wage policy? [DRAFT REPORT]
Enrique Fernández-Macías and Carlos Vacas-Soriano
Eurofound, October 2013
[full-text, 64 pages]
Part 1: Theoretical and policy considerations around a coordinated EU minimum wage policy ..... 2
1. Review of the literature on the effect of minimum wages 4
2. Debate on the EU minimum wage policy 9
3. Varieties of minimum wage systems in Europe and the difficulties of coordination 15
Part 2: A simple accounting exercise ............................................................................................. 18
4. Methodology 18
5. Evaluating the impact of a hypothetical common EU minimum wage threshold 22
6. Workers most affected by the introduction of an EU minimum wage 36
7. Two further explorations: the potential impact on poverty and on competitiveness 53
ANNEX TO DRAFT REPORT
[full-text, 22 pages]
CHART (Figure) in spreadsheet form
Press Release 21 October 2013
New Eurofound report evaluates potential impact of a coordinated EU minimum wage policy
(Dublin, Ireland): Although minimum wages are set at national level and the EU has no competences on this matter, there is an on-going debate about the possibility of coordinating minimum wage policy across Member States, for instance by setting a common threshold of 60% of the median wage in each country. In the majority of EU Member States, minimum wages are set by government regulation. Germany together with Austria, Denmark, Finland, Italy and Sweden are the exceptions. In these countries minimum wages are set by collective bargaining agreements.
A new Eurofound report evaluates the potential impact of such a common minimum wage threshold estimating the number of workers potentially affected. The use of a common metric allows the evaluation and comparison of the existing systems and levels of minimum wages in Europe in a highly illustrative way. The country that stands out the most in this exercise is Germany.
According to this simple accounting exercise, Germany would be the EU country where a larger proportion of the workforce would see their wages increase with the establishment of a common EU threshold of 60% of the median (almost one in four German workers would be affected), as can be seen in Figure 1. The reason is, of course, that the share of low-paid workers in the German labour market is among the highest in the EU (relative to the median in each country).
AND MORE...including CHART....
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