Cross-Country Report on Minimum Wages: Selected Issues

IMF Staff Country Reports, June 15, 2016

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The paper provides a cross-country report on minimum wages in Central Eastern and Southeastern Europe (CESEE).
In the past few years, many countries in CESEE have increasingly turned to minimum wage policies.
Statutory minimum wages had been in place at least since the early 1990s in the region, but they were typically set at relatively moderate levels and affected relatively few workers.
Minimum wages have risen sharply relative to both average wages and labor productivity.
Minimum wages often affect relatively more workers in CESEE than in Western Europe.
Governments are the key players in the minimum wage determination in CESEE countries.

CESEE vs. Western Europe:
- Minimum wages often affect relatively more workers in CESEE than in Western Europe.
- Statutory minimum wages in CESEE were present since at least the early 1990s and have shifted from moderate coverage to sharper increases relative to average wages and labor productivity.

Determination:
- Governments are the key players in minimum wage determination in CESEE countries.
Policy attention:
- The trend of sharp increases in minimum wages relative to average wages and productivity implies important distributive and labor market considerations for policymakers in CESEE.

Subjects: Employment, Income distribution, Labor, Minimum wages, National accounts, Wage adjustments, Wages
Keywords: CR, Employment, Income distribution, ISCR, minimum wage hike, minimum wage policy, Minimum wages, minimum-to-average wage ratio, Wage adjustments, wage distribution, wage growth, Wages, Western Europe

International Monetary Fund. Cross-Country Report on Minimum Wages: Selected Issues (IMF Staff Country Reports 2016, 151).