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The economic effects of the minimum wage

par Guillaume Vuillemey
jeudi 26 juin 2008.

Economic Note / June 2008

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In France, concerns about household purchasing power have revitalised the debate on how high the minimum wage (known as the SMIC) should be set. After an initial increase of 2.3% on 1 May, the minimum wage is to be raised again on 1 July by 0.9%.

Although raising the SMIC may look like a way of increasing the purchasing power of the lowest-paid workers, the very existence of a minimum wage is highly damaging to them. With its effects on unemployment levels and pay rates for wage earners, it is actually a dubious concept.



Documents
Economic Note - The economic effects of the minimum wage
Type : PDF (417.1 ko)
Mis à jour le : 26 juin 2008

Press Release - Raising the minimum wage : a threat to jobs
Type : PDF (31 ko)
Mis à jour le : 26 juin 2008




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