Minimum Wages Compress Wages, Empower Unions in Belgian Industries
Minimum wages in Belgium lead to a compression of wage differences in industries. By studying a large dataset, researchers found that when minimum wages go up, lower wages increase more than higher wages. This happens because unions and employers prefer raising lower wages. Factors like how close a company is to wage negotiations and how easy it is to find workers also play a role. The study shows that different industries have different effects on wages, and this information can help policymakers set minimum wages more effectively.