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2. Decline in real minimum wage.
Why should we expect earnings to rise in a straight line upward?" William Shenkir, academic"The real minimum wage is zero".
The highly favorable growth in employment in recent years when the real minimum wage was declining did not come at the expense of average wage levels.
Alex Gertner: We found that a one-dollar increase in the real minimum wage was associated on average with a 1.9percentt decrease in the annual state suicide rate in adjusted analyses.
Average real wage levels have increased by 2.1percentt since 1981, compared with a decline of 1.8percentt in the three years after 1973, when the real minimum wage increased by the same amount as it has recently declined.
They estimated that a 10percentt permanent increase in the real minimum wage reduces employment by about 0.7percentt after three years, with the greatest impact felt by younger workers and in industries with a higher proportion of low-wage workers.
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Figure 5 lists the countries in descending order of real minimum wages (in US$).
The countries of Netherlands, Belgium, and Ireland have the highest real minimum wages.
There is a positive association between real minimum wages and the number of patent applications, in that the higher the real minimum wages, the higher the level of innovation reflected by patent applications.
We analyzed the association between the average of economic indicators (GDP, GNI, and real minimum wages) and percentage of patents owned by foreign residents.
Countries like Mexico, Chile, Estonia, and the Slovak Republic have low real minimum wages and a correspondingly low number of PCT patent applications per 10,000 inhabitants.
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