Analyses minimum wage developments in the last ten years or so in 14 of the EU-27 countries and in Turkey. Considers the role of increased mobility of goods and services, capital and labour, and the issue of harmonization between individual member States

Membership in a monetary union implies stronger incentives for nominal wage flexibility in the form of wage indexation and shorter contract length than nonmembership. For example, entry into a monetary union may cause a move from a non-indexation to an indexation equilibrium. But more wage...