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To wave a hand and dismiss the entirety of Europe's wage policy as 'different in many ways' is disingenuous. What Europe represents is a systemic approach to wa
by Joe8Bit 7y ago
To wave a hand and dismiss the entirety of Europe's wage policy as 'different in many ways' is disingenuous. What Europe represents is a systemic approach to wage inflation at the low end; but this is also true for other countries with strong minimum wage guarantees (like Japan).
Every-time they've been put in place in this systematic way it's led to greater economic mobility, greater employment rates and a lowering of the burden on social welfare systems; whilst having little demonstrable impact on long-term economic growth, and in fact, there's recent evidence to suggest they have net positive impacts on growth[0][1][2][3]
What Seattle represents is a small isolated experiment within larger state, regional and federal contexts that effected its outcome. That's not to dismiss it's value, far from it, but to take as it some kind of definitive evidence is to weigh a grain of sand against a beach of contradictory evidence.
[0]: https://equitablegrowth.org/working-papers/distributional-minimum-wage/ https://equitablegrowth.org/working-papers/distributional-mi...
[1]: http://www.lse.ac.uk/business-and-consultancy/consulting/assets/documents/Low-Pay-and-In-Work-Poverty.pdf http://www.lse.ac.uk/business-and-consultancy/consulting/ass...
[2]: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/601139/The_impact_of_the_NMW_on_employment_-_a_meta-analysis.pdf https://assets.publishing.service.gov.uk/government/uploads/...
[3]: https://www.nber.org/papers/w25434 https://www.nber.org/papers/w25434