MINIMUM-WAGES AND ECONOMIC OUTCOMES IN EUROPE

In this paper we review the arguments and consider evidence on the eco nomic effects of minimum wages in Europe. We begin by outlining the sy stems of minimum wages that currently operate in European countries an d then consider some evidence on the economic effects of minimum wages in four countries (France, the Netherlands, Spain and the United King dom). We consider the relation between minimum wage floors and two eco nomic outcomes, employment and the distribution of income in working h ouseholds. We find little evidence that minimum wages have a bad effec t on jobs and some evidence that they have an equalising impact on the distribution of income among families with someone in work. (C) 1997 Elsevier Science B.V.