Toward a More Comprehensive View of the Minimum Wage

Summary

When increases in the minimum wage are determined based on the evolution of productivity and employment, a high minimum wage reflects—in the long-term—the good health of the economy, competition in its markets, its productive capacity and a high standard of living.

Key points

• Key points:
• When increases in the minimum wage are determined based on the evolution of productivity and employment, a high minimum wage reflects—in the long-term—the good health of the economy, competition in its markets, its productive capacity and a high standard of living.
• In this relationship between per capita income and minimum wage, the dynamics between the two variables matter — they can even be crucial.

Geographies

Topics

Tags