The minimum wage has passed the high inflation test
https://www.ft.com/content/563779a3-a16d-468b-bbae-c0a6edff9ce3
It reduces pay inequality while employment doesn’t suffer — even if productivity is not boosted
Minimum wages in times of high inflation
https://cepr.org/voxeu/columns/minimum-wages-times-high-inflation
High inflation, rising prices, and stagnant nominal wages have caused a decline in real wages for several quarters in many OECD countries. This column describes how almost all OECD countries increased their minimum wages between December 2020 and May 2023, which allowed them to keep pace with inflation. However, such increases raise concerns about wage distribution compression and potential price wage spirals. While regular adjustments of minimum wages appear necessary, careful assessment of their impact is required to avoid adverse consequences.
https://www.ft.com/content/563779a3-a16d-468b-bbae-c0a6edff9ce3
It reduces pay inequality while employment doesn’t suffer — even if productivity is not boosted
Minimum wages in times of high inflation
https://cepr.org/voxeu/columns/minimum-wages-times-high-inflation
High inflation, rising prices, and stagnant nominal wages have caused a decline in real wages for several quarters in many OECD countries. This column describes how almost all OECD countries increased their minimum wages between December 2020 and May 2023, which allowed them to keep pace with inflation. However, such increases raise concerns about wage distribution compression and potential price wage spirals. While regular adjustments of minimum wages appear necessary, careful assessment of their impact is required to avoid adverse consequences.