Business Less job loss with minimum wage increase than expected

Less job loss with minimum wage increase than expected

Assistance not proportionately up

Social benefits should not go up to prevent job losses, says the CPB. Benefits such as social assistance are tied to the minimum wage. When this increases, assistance also automatically increases and it becomes less attractive to work.

Trade unions have been calling for an increase in the minimum wage for some time now. Here and there, there were fears that employers would lay off staff en masse if they were to pay more wages. The CPB therefore thinks that it is not that bad. The researchers are now adjusting the estimates because more research has recently been carried out into raising the minimum wage.

According to CPB researcher Jan-Maarten van Sonsbeek, political parties can get started with the results of the research, for example when writing their program for next year’s parliamentary elections.

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