Lessons from Spain’s Minimum Wage Experiment | WHAT REALLY HAPPENED

Lessons from Spain’s Minimum Wage Experiment

By Paul Boyce

The impact of a higher minimum wage will depend on how much it is increased. For example, a new minimum wage of $20 will have a more significant effect than $10. Further, the impact can vary depending on how rapidly it is increased. Increasing the minimum wage to $20 over five years will have less of an impact than an increase in one year. It is because of such factors that some studies are able to conclude that there are no negative effects on employment.

Policymakers have generally acknowledged the need for slow and incremental wage hikes in order to limit any negative impacts. In turn, this has encouraged proponents of the minimum wage...

Tags:

Comments

SHARE THIS ARTICLE WITH YOUR SOCIAL MEDIA