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Comments On The Recent Evolutions Of The Minimum Wages And Of The Inflationary Phenomenon In The European Union

Author

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  • Odette Andreea Marinache

Abstract

The purpose of this article is to present a comparative analysis of the gross minimum wage at national level expressed in euros and in standard purchasing power, in the Member States of the European Union (EU) where it is established by law. The difference between countries in terms of the level of minimum wages was considerably smaller once the prices applied in the respective Member States were taken into account. However, the incomes of the households whose members are minimum wage beneficiaries, have been strongly eroded as a result of the inflationary shock caused by the multiple crises of the last two years, leading to a dramatic drop in the standard of living for these households. Thus, almost a quarter of the EU population was at risk of poverty or social exclusion in 2022. Despite an unemployment rate at a two-decade low, and a significant labor shortage, generally the minimum wages are not motivating, and vacancies in many important sectors of activity remain unfilled.

Suggested Citation

  • Odette Andreea Marinache, 2023. "Comments On The Recent Evolutions Of The Minimum Wages And Of The Inflationary Phenomenon In The European Union," Euroinfo, Institute for World Economy, Romanian Academy, vol. 7(4), pages 57-67, September.
    • Handle: RePEc:iem:eurinf:v:7:y:2023:i:4:p:57-67
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    File URL: https://iem.ro/rem/index.php/euroinfo/article/view/881/965
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    More about this item

    Keywords

    minimum wage; purchasing power parity; inflation; unemployment; risk of poverty or social exclusion; decent work; European Union;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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