Ιn recent years, minimum wages have been increasingly popular with policy makers. This is indicated by the number of countries that have either introduced a statutory minimum wage or have increased their statutory minima to a high level relative to median earnings.

There are several economic explanations of why the employment effect of an increase in the minimum wage may be elusive.

 

A study by

Andreas Georgiadis*, Ioannis Kaplanis** and Vassilis Monastiriotis***

* Associate Professor, Brunel University; Research Associate, University of Oxfo
** Research Associate, LSE
*** Associate Professor, LSE