There are some E.U. countries which have NO minimum wage laws.
It is helpful to compare and contrast:
There are seven European Union (E.U.) countries in which no minimum wage is mandated (Austria, Cyprus, Denmark, Finland, Germany, Italy, and Sweden). If we compare the levels of unemployment in these countries with E.U. countries that impose a minimum wage, the results are clear. A minimum wage leads to higher levels of unemployment. In the 21 countries with a minimum wage, the average country has an unemployment rate of 11.8%. Whereas, the average unemployment rate in the seven countries without mandated minimum wages is about one third lower — at 7.9%.
http://www.cato.org/publications/commentary/let-data-speak-truth-behind-minimum-wage-laws
The very simple concept of freedom seems to elude those who wish to dictate what wage a free human being should be
allowed to accept. A
truly free individual should be able to choose what is acceptable for
his labor.
So much for freedom.
And here is a piece by the illustrious Thomas Sowell;
http://www.creators.com/conservative/thomas-sowell/minimum-wage-madness.html
Most nations today have minimum wage laws, but they have not always had them. Unemployment rates have been very much lower in places and times when there were no minimum wage laws.
Switzerland is one of the few modern nations without a minimum wage law. In 2003, "The Economist" magazine reported: "Switzerland's unemployment neared a five-year high of 3.9 percent in February." In February of this year, Switzerland's unemployment rate was 3.1 percent. A recent issue of "The Economist" showed Switzerland's unemployment rate as 2.1 percent.
@Wavels, thank you, for finally engaging in this discussion with facts and not a three line riposte. I read the Cato institute article and had read the article by Sowell earlier. In both cases, they make a rather simplistic argument that a minimum wage causes unemployment. As far as the Cato article goes, they prove the old maxim that correlation does not prove causation.
Looking at the countries that Cato holds up as examples where no minimum wage "resulted" in higher employment, they neglect that these countries
do have a minimum wage but its negotiated between industry councils and unions. Sweden for example has union representation for 70% of their workers. The other countries listed with no minimum wage also have strong union representation. The reasons for these countries good employment situation has nothing to do with a lack of a statutory minimum wage law, their minimum wages are set through collective bargaining.
If we look at the countries that have a statutory minimum wage, its quite low compared to minimum negotiated wages compared for the six "model" nations.
Time and again, this argument that minimum wages cause increased unemployment are pieced together with partial, cherry picked data. A closer look shows them to have no validity. There are economic models that also give backing to theory for why higher minimum wages aren't culprits in higher unemployment. I went over one of these arguments in a posting on this thread:
https://www.rollitup.org/t/the-positive-economic-effect-of-lowering-the-minimum-wage-to-0.871917/page-4. The Sowell article is refuted in this posting. I won't go into it here but will be glad to rehash it if you want.
some back-up information:
Wikipedia entries on the six "no minimum wage countries listed in the Cato article:
Austria, nationwide collective bargaining agreements set minimum wages by job classification for each industry and provide for a minimum wage of
€1,000 per month—Wages where no such collective agreements exist, such as for domestic workers, janitorial staff, and au pairs, are regulated in pertinent law and are generally lower than those covered by collective bargaining
Cyprus, €870 per month for shop assistants, nurses' assistants, clerks, hairdressers, and nursery assistants; it rises to €924 after six months' employment. For asylum seekers working as unskilled workers in the agricultural sector, the minimum monthly wage was 425 euros ($570) with accommodation and food provided. For skilled workers in the agricultural sector, the minimum salary was 767 euros ($1,040) without accommodation and food
Denmark, negotiated between unions and employer associations; the average minimum wage for all private and public sector collective bargaining agreements was approximately DKK 110 ($20) per hour, exclusive of pension benefits.
Finland, the law requires all employers, including non-unionized ones, to pay minimum wages agreed to in collective bargaining agreements; almost all workers are covered under such arrangements
Germany, €8.50 per hour. A higher minimum wage is often set by collective bargaining agreements and enforceable by law.
Italy, instead set through collective bargaining agreements on a sector-by-sector basis
Sweden, set by annual collective bargaining contracts
Minimum wages in countries that have mandated them:
Among the 22 member states that have national minimum wages, Eurostat has divided them into three main groups. In January 2015, ten countries had minimum wages below €500 per month: Bulgaria (€184), Romania (€21
, Lithuania (€300), the Czech Republic (€332), Hungary (€333), Latvia (€360), Slovakia (€380), Estonia (€390), Croatia (€396) and Poland (€410).
In five other member states, minimum wages were between €500 and €1,000 per month: Portugal (€589), Greece (€684), Malta (€720), Spain (€757) and Slovenia (€791).
