Every year of the year, with the conversations between the state, the employer and the unions To determine the increase in the minimum intermediate -industrial salary (SMI)The same debate arises: Is it convenient that they can, as a substitute for this salary soil established by the state? Set different regional minimum wages Established based on specific characteristics and living conditions of regional or local areas?
This year, the answer to the debate comes to researchers of the Department of Labor Law and Social Security from the hand of a study in charge of the economic and social committee of Barcelona University of ValenciaOvarian Adreion dotoli And Paula Lopez. The summary of this work indicates that it is useful to reduce some economic inequalities in a regional or local minimum wage, but its use must be serious in its use to prevent the unreasonable competition between companies and territories.
This minimum regionalized income examines two recommendations or alternatives to implement. On the one hand, it is “within the current constitutional structure, depending on the average salary of each society or locality, the government as per the municipality or territory,” they insist that different SMI “prevents the act of other regions”. The authors insist “because” because of the competition for municipalities and regions, they will be able to attract companies or consumers from other parts of the country.
Second, they point out another option that already permits the current law: regional or municipalities use public purchases to ensure the minimum wage for workers of companies that carry out their operations through contracts with regional administrations or premises.
Accurately, state -level trade union and business organizations also say for years Public hiring State update every year for the minimum wage of your matches. However, they do not want to talk about these updates from the Treasury, which will automatically increase the price of this hiring for administrations.
After examining the economic impact of the minimum wage generated by communities or municipalities, these two researchers have decided, however, in the entire state that their effects, positive and negative children will be small.
Beneficial evil
They recognize the opportunity to create regional and local minimum wages, but also warn some risks. Among the previous ones, “most literature – although not all – decides that the increase in minimum wage improves the growth of the municipality”, and with the created and high -income workers. In addition, the consumption of this regional wage soil home will increase; Reduce people’s debt; And reduce the salary difference between professional types within companies. That is, they will reduce the gap between the most earned and the charge.
Benefits so far. But these two researchers find more risks than benefits. There is a high probability of low business growth in municipalities with high minimum wages of difficulties. According to their data, companies will be implemented in neighboring municipalities with low SMIS, creating that unreasonable competition they have previously warned.
Similarly, its citizens in the proximity of location allows their purchase in municipalities with low SMIs, which do not have to affect the minimum wage cost of products and services at the final price of products. Third, according to different studies, “The increase in minimum intermediate salaries at the local level creates an increase in rental rent in the municipality.” It will also encourage and encourage. ”
Finally, the biggest economic risk of increasing minimum wages is that in this case it can be extended in any sector, “Literature re -indicates that the most common response to companies for SMI increases is a reduction.” When they explain this, unemployment does not increase, but it damages the final income of the worker. In addition, a portion of these hours is not responding to the cut of the hours that actually made, but only in those who have been announced. So, in fact, the informal economy is, these researchers point out.
In a nutshell, they conclude that “SMI is complicated and difficult to expect in a particular municipality or increased effects on a particular region.” Therefore, studies carried out in their practice (with an article with Barcelona’s metropolitan reference salary; in Poland in Europe; or in the US, Indonesia or China).
