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The Parameters of a National Minimum Hourly Wage

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  • Askenazy, Philippe

    (CNRS)

Abstract

Both academic and political debates over the minimum wage generally focus on the minimum wage rate. However, the minimum wage is a complex institution composed of a wide variety of parameters. In this note, I show that nominal rates provide a very crude picture of minimal compensation and of actual employer cost by the comparison of the French, British and US Federal national minimum hourly wages. The extent of their coverage, enforcement procedures, and how the "wage" is defined differ widely between countries. Taking these parameters into account can even alter the comparative hierarchy based on nominal rates alone.

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  • Askenazy, Philippe, 2014. "The Parameters of a National Minimum Hourly Wage," IZA Policy Papers 85, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izapps:pp85
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    References listed on IDEAS

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    1. Paul Gregg & Stephen Machin & Mariña Fernández-Salgado, 2014. "The Squeeze on Real Wages – and what it Might take to End it," National Institute Economic Review, National Institute of Economic and Social Research, vol. 228(1), pages 3-16, May.
    2. Juan Dolado & Francis Kramarz & Steven Machin & Alan Manning & David Margolis & Coen Teulings, 1996. "The Economic Impact of Minimum Wages in Europe," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00353896, HAL.
    3. François Rycx & Andrea Garnero & Stephan Kampelmann, 2013. "Minimum Wages in Europe :Does the Diversity of Systems Lead to a Diversity of Outcomes," ULB Institutional Repository 2013/245797, ULB -- Universite Libre de Bruxelles.
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    Cited by:

    1. Alan Manning, 2021. "The Elusive Employment Effect of the Minimum Wage," Journal of Economic Perspectives, American Economic Association, vol. 35(1), pages 3-26, Winter.
    2. Bofinger, Peter & Schnabel, Isabel & Feld, Lars P. & Schmidt, Christoph M. & Wieland, Volker, 2014. "Mehr Vertrauen in Marktprozesse. Jahresgutachten 2014/15 [More confidence in market processes. Annual Report 2014/15]," Annual Economic Reports / Jahresgutachten, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, volume 127, number 201415, September.
    3. Sarah Marchal & Linus Sióland, 2019. "A safety net that holds? Tracking minimum income protection adequacy for the elderly, the working and the non-working of active age," Working Papers 1909, Herman Deleeck Centre for Social Policy, University of Antwerp.

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    More about this item

    Keywords

    minimum wage; exemptions; deductions; international comparisons;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J8 - Labor and Demographic Economics - - Labor Standards

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