In his latest screed against the minimum wage, Mark Perry goes international in an attempt to demonstrate that countries without a minimum wage have lower youth and overall unemployment rates than countries with minimum wages. Hmmm.
Perry’s table is immediately below. Taking a quick look, it would appear that a zero minimum wage is the path to a robust labor market and prosperity – just look at the differential between the upper grouping and the lower grouping.
Case closed, eh?
Here’s the part that Perry overlooked and neglected to mention: While it appears technically true that the bottom eight countries have no “official” minimum wage, they all – every one – employ some manner of collective bargaining agreements to ensure their workers get a fair shake:
Austria: “National collective bargaining agreements”
Denmark: “Negotiated between unions and employer associations”
Finland: “Negotiated between unions and employer associations”
Iceland: “Collectively bargained agreements”
Italy: “Collective bargaining agreements”
Norway: “Negotiated between labor, employers, and local governments”
Sweden: “Independent unions to bargain wages collectively”
Switzerland: “Collective labour agreements”
And those minimum wages? ALL SET BY COLLECTIVE BARGAINING AGREEMENTS:
(Source: List of minimum wages by country)
So, in fact, it would appear that countries with strong pro-labor policies are doing pretty well indeed. Thank you for supporting labor, Professor Perry. Keep fighting the good fight for stronger labor policies. Well done!
UPDATE: 12/17/15 6:11am
As was pointed out in comments, for some strange reason, Germany, Europe’s largest economy was omitted, except for the fact that their Unemployment Rate is at record lows,
Source: Wage Indicator
Also, the way Perry calculated the Unemployment rate was wrong, using total population instead of total labor pool.
Lies, and the lying liars who tell them . . .
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