Minimum wage and labour market: comparative study between the UK and Germany

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Published: Feb 5, 2025
DOI: https://doi.org/10.12681/sp.37379
Keywords:
minimum wage collective bargaining low-paid workers labour market living wage economic evaluation welfare state
Flavien Crozier
Panteion University
Abstract

This essay explores the economic, political, and social implications of minimum wage policies in Germany and the United Kingdom, focusing on the impact on the labour market. Tracing the historical evolution and key developments in 2015, the study analyses short-term effects and challenges in assessing the policy's true impact. The findings suggest positive outcomes in increasing incomes for low-wage workers with minimal disruptions to employment. However, concerns persist about potential drawbacks, such as wage disparity and challenges to collective bargaining, emphasising the need for a comprehensive approach. Despite achieving some objectives, the reforms often fall short of expectations, with limited success in improving living standards.

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