Oireachtas Joint and Select Committees

Wednesday, 10 July 2024

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Sub-Minimum Rates of the National Mininimum Wage: Discussion

9:30 am

Dr. Paul Redmond:

The evidence is mixed. Within the EU, Belgium recently reformed, let us say, its sub-minimum youth rates by increasing them and essentially abolishing most of them. There is a study for Belgium that shows little to no effect.

The Netherlands recently enough reformed its sub-minimum youth rates by increasing them. There was some evidence of negative impact, but it was relatively minor. Beyond the EU, other countries have recently changed their policy in this area. New Zealand did it, for example. Again, there was a study to examine whether it had significant impacts on youth unemployment or adverse impacts on hours worked, let us say. Again, the evidence showed that it was quite limited.