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Revisiting the Role of Minimum Wages

IEB Report 1/2025: Revisiting the Role of Minimum Wages

Although early economic theory and empirical research highlighted the potential disemployment effects of binding minimum wages (MWs), a growing body of evidence— strengthened by improved methodologies and richer data— has deepened our understanding of minimum wage (MW) policies, partially reshaping this perspective (Dube and Lindner, 2024).