Scrap minimum wage, says professor

The minimum wage should be scrapped because it has no effect on the redistribution of wealth, Bas Jacobs, professor of public finances and economic policy, tells Tuesday’s Trouw.

Jacobs says the only effect of the minimum wage is to shut those who already have little chance of finding work out of the jobs market.
Every euro the government redistributes to the less-well-off costs the tax payer 50 cents, according to the professor’s calculations. He says the cost of redistributing wealth will be lower if is paid for through taxes and premiums rather than continuing with the minimum wage.

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