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Who Earns Minimum Wages in Europe? New Evidence Based on Household Surveys

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  • François Rycx
  • Stephan Kampelmann

Abstract

This paper aims to provide a comprehensive, evidence-based, and up-to-date assessment of minimum wages in a range of European countries. A first step towards a better understanding of where Europe stands today on this issue requires to grasp the diversity of European minimum wage systems, a key objective of the paper at hand. The second objective is to document international differences in the so-called "bite" of the minimum wage. This leads to questions such as "how do national minimum wages compare to the overall wage distribution?" and "how many people earn minimum wages in each country?" that are assessed for a set of nine countries from Western, Central and Eastern Europe: Belgium, Bulgaria, Germany, Hungary, Ireland, Poland, Romania, Spain, and the United Kingdom. This sample was designed to include countries for which recent evidence has been missing prior to this paper. What is more, the study also overcomes the narrow focus of extant overviews that have typically focussed only on full-time employment. Crucially, the study improves on existing work by looking beyond aggregate numbers; it provides a detailed panorama of the population of minimum wage earners in each country under investigation, notably by describing their composition in terms of a range of socio-demographic characteristics.

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  • François Rycx & Stephan Kampelmann, 2013. "Who Earns Minimum Wages in Europe? New Evidence Based on Household Surveys," DULBEA Working Papers 13-01, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:dul:wpaper:2013/137078
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    References listed on IDEAS

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    1. Magda, Iga & Rycx, François & Tojerow, Ilan & Valsamis, Daphné, 2008. "Wage Differentials across Sectors in Europe: An East-West Comparison," IZA Discussion Papers 3830, Institute of Labor Economics (IZA).
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    8. Iga Magda & François Rycx & Ilan Tojerow & Daphné Valsamis, 2011. "Wage differentials across sectors in Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(4), pages 749-769, October.
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    Cited by:

    1. Garnero, Andrea & Kampelmann, Stephan & Rycx, François, 2013. "Sharp Teeth or Empty Mouths? Revisiting the Minimum Wage Bite with Sectoral Data," IZA Discussion Papers 7351, Institute of Labor Economics (IZA).
    2. Selin Pelek, 2015. "The Employment Effect of the Minimum Wage: An Empirical Analysis From Turkey," Ekonomi-tek - International Economics Journal, Turkish Economic Association, vol. 4(1), pages 49-68, January.
    3. Sam Desiere & Bart Cockx, 2021. "How Effective Are Hiring Subsidies to Reduce Long-Term Unemployment among Prime-Aged Jobseekers? Evidence from Belgium," CESifo Working Paper Series 9325, CESifo.
    4. Sarah Marchal & Mechelen, N. van, 2013. "GINI DP 87: Activation strategies within European minimum income schemes," GINI Discussion Papers 87, AIAS, Amsterdam Institute for Advanced Labour Studies.
    5. Marchal, Sarah & Marx, Ive, 2015. "Stemming the Tide: What Have EU Countries Done to Support Low-Wage Workers in an Era of Downward Wage Pressures?," IZA Discussion Papers 9390, Institute of Labor Economics (IZA).
    6. Cockx, Bart & Ghirelli, Corinna, 2016. "Scars of recessions in a rigid labor market," Labour Economics, Elsevier, vol. 41(C), pages 162-176.
    7. Cockx, Bart, 2013. "Youth Unemployment in Belgium: Diagnosis and Key Remedies," IZA Policy Papers 66, Institute of Labor Economics (IZA).
    8. Maritza López-Novella, 2018. "Working Paper 04-18 - Removing youth sub-minimum wage rates in Belgium: did it affect youth employment?," Working Papers 1804, Federal Planning Bureau, Belgium.
    9. Dingeldey Irene, 2019. "Wechselwirkungen zwischen Mindestlohn und Tariflohn: Verschiedene Typen im Branchenvergleich," Arbeit, De Gruyter, vol. 28(1), pages 55-72, March.

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    More about this item

    Keywords

    Minimum wage systems; Europe; Socio-economic consequences;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights

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