Will unemployment increase if minimum wage is raised? These are the good and the bad

All right, let's imagine something even better: if the minimum wage in Kosovo were to grow from 130 to 1500 per month. What would happen? Employers would not be able to sign contracts with workers, or keep them at work, so unemployment would increase massively. So the issue is complex, and that's why it has to be treated carefully.

The US in 2014 discussed the rise of the minimum wage from $7.25 to $10.1 an hour. Obama [then] had argued that this would improve the American economy without reducing the number of jobs.

President Barack Obama in 2013

Opponents of this change claimed that such a salary hike would leave half a million people without jobs since a large part of employers would have no interest in paying, writes Periscope.

This is a very complicated issue, of course, with different views, regional differences and different political positions that only polarise the debate.

What is the minimum wage in Kosovo?

Compared to the U.S. where minimum wage for a working hour is $7.25 or 6.4 0 EURO, in Kosovo for workers under 35 is only 65 cents. So Kosovo youth are about ten times more discriminated against than American discrimination, writes Periscopi.

The minimum monthly wage so is 13 0 EURO for youths up to 35 and 170 YOU young people of this age.

But in the U.S., this minimum wage is also called the minimum federal package, and many American states [29 Sosh] have set the limit much higher. I mean, workers don't dare pay less than that.

These are some of the approved benefits of minimum wage growth:

It helps families maintain price inflation on a regular basis.

Give people more money will help speed up economic growth.

-The increase in consumption [which according to our Statistics Agency occurs despite the failure to raise minimum wages] raises demand and creates more jobs.

- The workers stay longer at a job.

The rate of minimum wage also increases taxes that will be returned to the state.

These are some of the bad things about this:

Employers who don't have a large budget will fire many workers from the inability to pay. Some of the workers will get more, but others will be out of work.

-This inevitably leads to consumer growth, and rising prices, while it is known that people at the borders of this economic situation will have difficulty investing and creating new jobs.

Businesses can suspend the opportunity to hire other people.

-The corporations won't come and invest in places where the workforce is cheaper and more qualified.

-The minimum high wage will keep the workforce unqualified, as it will offer you higher comfort.

-The minimum high wage will increase informal employment, and currently a big problem for our country.

Minimum Salaries in Other Countries

While in Kosovo the minimum wage is 130Eur, in other countries where the economy is much stronger, it even runs up to 1509Eur (Republished Republic). But there are also countries like Ukraine that the minimum wage has only 107Eur of Moldova with 105Eur.

Europe's current map of minimum wages for all states, including Scandinavians that do not have such policies.

In the world, the world's minimum wage is Sierra Leone, which pays six euros a month for workers.

In neighboring countries, this is a list of minimum wage for 40 hours and 52 weeks:

Albania

Montenegro 193Eur

Serbia -231Eur

Bosnia and Herzegovina 208Eur

Macedonia 203Eur. /Periscope