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Now that the minimum wage approaches the target level of 60% of the average salary, we need to rethink employment and training policies. If we don’t, the unemployment rate, investment and productivity growth could all take a hit.
Every economic policy has intended and unintended consequences. The significant increase in Spain’s legal minimum wage in 2017 will barely have any effect on employment or economic activity. Therefore in principle the measure’s success will lie in the attainment of the objectives presumably pursued: improving the income of …
