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Project in Economics of Public Policy. The introduction of a national minimum wage is increasingly debated in many countries in Europe: Germany has approved the introduction of a national minimum wage in July. Italy has been debating this for some years now. Other countries have already introduced it sometime ago, including the UK in 1999.
A newly appointed Minister for Work and Pensions, with no knowledge on this subject, will be meeting her counterparts at a EU summit, where she has been asked to brief them on the UK experience so far. The Minister has asked you to:
Clarify what is the economic rationale behind the introduction of the minimum wage? What are the economic theories in favour and against the introduction of the minimum wage?
What evaluation can be made of the UK experience?
What conclusions would you draw on the introduction of the minimum wage and lessons for other countries?.
Presentation of written work:
Presentation is important. Please note that attention should be paid to presentation and format by including a title page, table of contents and list of figures and tables. Also you should adopt, where appropriate, a system of sections and subsections with a consistent hierarchy. [The civil service system of 1, 1.1, 1.2, 1.2.1 etc. can be used.] It is essential that references are given, indicated in the text by author’s name and year of publication, e.g. Goodall (1988). The Harvard system of listing references should be given at the end of the paper before any appendices and annexes.
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