MINIMUM WAGES AND SOCIAL WELFARE EXPENDITURES

Jerold Waltman and Christopher Marsh

Policy Studies, 2007, vol. 28, issue 2, 163-174

Abstract: Are minimum wage policies substitutes for or complements to expenditure oriented social welfare policies? We address this research question from a cross national perspective through the utilization of OECD data. We find that countries with high levels of expenditure on traditional social welfare policies are decidedly less likely to have any type of minimum wage policy than lower spending nations. However, we also find that there is a strong correlation between the level of the minimum wage and the percentage of GDP spent on social welfare among countries that have minimum wage policies.

Date: 2007
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DOI: 10.1080/01442870701312092

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