Recent labour market developments with a focus on minimum wages

This chapter provides an overview of labour market developments in the OECD area since the onset of the financial and economic crisis in 2008 and discusses OECD projections through the end of 2016. Changes in the level and composition of employment are documented, as well as the evolution of real wages. A special section analyses statutory minimum wages. After describing the minima in place in 26 OECD countries, evidence about their effectiveness in supporting the incomes of workers at the bottom of the wage ladder is presented and assessed. Effective co-ordination of minimum wages with tax and benefit policy receives particular attention.