Minimum wages after the crisis: Making them pay

Source: Organisation for Economic Co-operation and Development (OECD), Focus on, May 2015

Minimum wages are common but controversial. Three out of four OECD countries use them, and supporting low-wage earners is widely seen as important for promoting inclusive growth. But views differ about whether such support is best provided through minimum wages, or closely related policies, such as government transfers. This policy brief considers three aspects that are central for a balanced assessment of policy choices: The cost of employing minimum-wage workers, their take-home pay, and the number of workers affected….