The minimum wage is an economic policy in which the state controls the minimum income of the citizens. It is distributed all over the world and is embedded in any economic model as an essential element. This model has both economic benefits and disadvantages that affect the outcome of any change in the minimum wage for the population. Consequently, the importance of this component of the economy affects the IPE (International Political Economy).
The importance of the minimum wage for the population lies in the economic impact it has. Economically the minimum wage is seen as a negative model that hinders the proper development of a working business. This is due to the fact that the change in the minimum wage does not entail a real economic upsurge of the population, but rather the opposite: with an increase in the minimum wage required from companies, in order to avoid unnecessary costs, companies will reduce the staff of employees. Furthermore, any ill-advised changes in the minimum wage are detrimental to economic growth, also any action in this area can result in significant consequences for the whole economy itself.
Considering the minimum wage from the perspective of the global economy, the importance of the economic impact of the minimum salary-level on global stability is revealed. The minimum wage is one of the factors of the provision of the population and is reflected in the image of the country on a global scale. That is why the international importance of the correct and deliberate management of the minimum wage in the country is highlighted, because only by comparing all the risks and benefits of changing it, countries achieve economic growth.