Higher minimum wages are associated with greater financial well-being

Minimum wages have been a contentious issue in several countries across Europe, most notably in Germany, where a minimum wage came into force for the first time at the start of 2015. Michael A. Krassa and Benjamin Radcliff present a comparison of 24 industrial democracies. They find that regardless of the size of a country’s economy, its current economic situation, or the time frame chosen, there is clear evidence that higher minimum wages are associated with an overall improvement in the financial well-being of citizens.

• Primary Source

ESO: Background information: National minimum wages in the EU. Monthly minimum wages in euro varied by 1 to 10 across the EU in January 2015 http://www.europeansources.info/record/press-release-national-minimum-wages-in-the-eu-monthly-minimum-wages-in-euro-varied-by-1-to-10-across-the-eu-in-january-2015/

ESO: Background information: Minimum wages in the EU http://www.europeansources.info/record/minimum-wages-in-the-eu/

Germany: Statistisches Bundesamt: Facts & Figures: National economy & environment: Earnings & labour costs: Minimum wages https://www.destatis.de/EN/FactsFigures/NationalEconomyEnvironment/EarningsLabourCosts/MinimumWages/MinimumWages.html

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