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Adequate minimum wages

Briefing 19-01-2021

This briefing finds that the European Commission's impact assessment (IA), which accompanies the directive proposal on adequate minimum wages, is based on sound data and presents a sufficiently broad range of policy options. It would have been useful if the measures concerning collective bargaining and adequacy of minimum wages had been explained more thoroughly in relation to the chosen legal basis. The problem description would have benefited of using more information from the extensive annexes ...

The Proposed Minimum Wage Directive

In sintesi 24-11-2020

Following a two-stage consultation of social partners launched in February 2020, on 28 October, the European Commission published its proposal for a directive on adequate minimum wages in the European Union.

This note, drawn up by Policy department A, gives an overview of in-depth analyses prepared by monetary experts for the February session of the Monetary Dialogue. The Committee on Economic and Monetary Affairs (ECON) asked the experts to prepare analyses focusing on the EU economic recovery.

Why does the recovery show so little inflation?

Analisi approfondita 15-02-2018

We investigate the determinants of inflation in the euro area since 2000 and show that the most important determinants are inflation expectations and wage growth. Both indicators have contributed negatively to inflation since 2014 but inflation expectations less so since 2015 whereas the contribution of wage growth has remained negative. We suggest that structural reforms may have put a drag on the ability of the ECB to reach its inflation target rapidly.

The huge literature on the causes of the persistent weakness in inflation in the euro area has not identified one single key factor. Moreover, inflation has also been lower than expected in many advanced countries. Low inflation expectations seem to have played an important role in reducing wage demand, both in the US and the euro area; but a residual output gap also contributes. The concerns about low inflation seem overblown. The HICP (Harmonized Index of Consumer Prices) used to measure inflation ...

Inflation has been persistently below the inflation target of the ECB despite the ongoing economic recovery in the euro area. In this paper, we analyse whether the relationship between inflation and economic activity in the euro area has changed based on a review of the literature and discuss implications for monetary policy.

This Cost of Non-Europe Report, prepared for the European Parliament’s Committee on International Trade, analyses the economic added value of international trade. Aimed at feeding into on-going debates about the roles of globalisation and the rules-based multilateral trade system, it presents an overview of key trade theories, global trade patterns and the arguments for opening and restricting international trade. It analyses distributional consequences of such trade, the role of global value chains ...

This paper explores the risk of precarious work in privatised utilities, based on data analysis and literature review. It examines the history of privatisation of utilities in the EU including programme countries and the impact that this has had on levels of employment. Moreover, it presents a range of measures to cushion adverse effects. This document was prepared by Policy Department A at the request of the Employment and Social Affairs Committee.

Equality between women and men is one of the European Union's founding values. Under the "Strategic engagement for gender equality 2016-2019" policy plan, the EU seeks to increase female labour-market participation, reduce the gender pay gap, promote equality between women and men in decision-making, fight gender-based violence, and promote gender equality across the world. However, despite all efforts, such as adopting legislation on equal treatment, gender inequality remains a serious problem in ...

Japan: women’s empowerment

Briefing 02-03-2017

The world’s third largest economy has not yet done enough to encourage its female talent. Prospects for women in Japan are excellent in terms of literacy, enrolment in primary and secondary education, and healthy life expectancy. However, the picture changes if we look at women’s reduced participation in political and professional life. In 2016, three women ascended to top political jobs in Japan: Tomomi Inada was appointed Minister of Defence; Yuriko Koike was elected Governor of Tokyo; and the ...