Germany and the Minimum Wage

Until November 2013, a minimum wage in Germany did not exist yet unemployment was low, the economy strong; and German workers were renowned for strong job protection- perhaps this could mean a minimum wage is not entirely necessary. However the non-existence of a minimum wage led to some employees being paid terribly low wages; and this surely is a sign of inequality and hence market failure. Also, if a minimum wage did exist to prevent this, should wages be negotiated between workers and their industries or should one wage be set to cover all workers? If trade union bargaining power is deemed limited, maybe a national wage would be most effective.

europe

minimum wage

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