Effect of national minimum wage increases on low-paid wages by intensity of change

In recent years, national minimum wages have risen sharply across EU countries, making their influence on collective wage bargaining and general wage developments increasingly relevant. The findings show that national minimum wages have a positive impact on raising negotiated wage levels. However, careful policy design is required to avoid the crowding-out of collective bargaining, especially in low-paid sectors. Minimum wages also play a key role in improving wage levels among the lowest-paid employees, although spillover effects occur across the wider wage distribution.