Cover IMF Working Papers
A European Minimum Wage: Implications for Poverty and Macroeconomic Imbalances
Author:
Ms. Enrica Detragiache
Search for other papers by Ms. Enrica Detragiache in
Current site
Google Scholar
PubMedClose
,
Mr. Christian H Ebeke
Search for other papers by Mr. Christian H Ebeke in
Current site
Google Scholar
PubMedClose
,
La-Bhus Fah Jirasavetakul
Search for other papers by La-Bhus Fah Jirasavetakul in
Current site
Google Scholar
PubMedClose
,
Koralai Kirabaevanull

Search for other papers by Koralai Kirabaeva in
Current site
Google Scholar
PubMedClose
,
Mr. Davide Malacrino
Search for other papers by Mr. Davide Malacrino in
Current site
Google Scholar
PubMedClose
,
Florian Misch
Search for other papers by Florian Misch in
Current site
Google Scholar
PubMedClose
,
Mr. Hyun Park
Search for other papers by Mr. Hyun Park in
Current site
Google Scholar
PubMedClose
, and
Ms. Yu Shi
Search for other papers by Ms. Yu Shi in
Current site
Google Scholar
PubMedClose
Series:
IMF Working Papers
Volume/Issue:
Volume 2020: Issue 059
Language:
English
Publication Date:
22 May 2020
DOI:
https://doi.org/10.5089/9781513545073.001
ISBN:
9781513545073
ISSN:
1018-5941
Pages:
46
Keywords:
WP; wage-inflation pass-through; wage growth; MW harmonization; wage competitiveness; wage differentiation; pressure mechanism; wage distribution; workers range; influence wage dynamics; IMF staff calculation; current account; wage inequality; Wages; Minimum wages; Labor costs; Wage adjustments; Europe; Global; Central and Eastern Europe; Baltics; Minimum Wage; European Union; Poverty Alleviation; Current Account Rebalancing; Monetary Unions
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (1.6 MB) Download Epub
A hypothetical European Minimum Wage (MW) set at 60 percent of each country’s median wage would reduce in-work poverty but have limited effects on overall poverty, as many poor households do not earn a wage near MW and higher unemployment, higher prices, and a loss of social insurance benefits may erode direct benefits. Turning to competitiveness, since the MW increase to reach the European standard would be larger in euro area countries with excessive external surpluses, the associated real appreciation should help curb existing imbalances. However, a few countries with already weak external positions would experience an undesirable real appreciation.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2020: Issue 059