While the minimum wage has undoubtedly been a success for most low paid workers in absolute terms, whether it has worked to lessen the more general problem of inequality seems less likely.
Once allied with in-work benefits, we have in the UK a system that subsidises employers of low-waged workers & works against the necessary move to increase productivity.
While the system looks like its working in reality mostly benefits companies not workers.
#workers #economics
https://northwestbylines.co.uk/business/how-uk-policy-on-income-inequality-is-failing-low-paid-workers/
I live in Luxembourg which I believe has the highest minimum salary in the world. Not only that, but the statutory minimum salary, like all salaries, benefits and pensions, is index linked to the rate of inflation . Every increase in prices of 2.5% results in a corresponding increase in the statutory minimum salary!
Even that is inadequate to live on so how people manage in countries where the statutory minimum wage is lower then here, I am not sure!
