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Welfare Reform on the Web (April 2006): Minimum Wage - Overseas

P. Skedinger

Labour Economics, vol.13, 2006, p.259-290

The empirical approach in this study identifies workers affected by real minimum wage increases and decreases respectively. Job separations and accessions for the treatment groups are then contrasted with outcomes for the control groups, with wages marginally above those of the treatment groups. The technique is based on the standard competitive model, where employment is determined along the labour demand curve. Using data from Swedish hotels and restaurants over the period 1979-1999, results show that job separations tend to increase with rising minimum wages (except for teenagers during 1993-98). The evidence regarding accessions is less conclusive.

A national minimum wage for Germany?

Anon.

European Industrial Relations Review, issue 386, 2006, p.25-27

A heated debate is under way in Germany on the advantages and disadvantages of putting into place some form of minimum wage system. The arguments are complex, but many people are convinced that the country could benefit from some kind of guaranteed minimum rates for workers. A government commission briefed to look into the issue of low pay will report in Autumn 2006. Article reviews the main areas under discussion.

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