Average real wages increased in more than two-thirds of EU countries in 2015 but there were substantial differences across the region (see first column in table below). Wages grew in most eastern European countries and, indeed, to a much greater extent than in most western European countries, where wage growth was rather subdued or even negative, especially in Mediterranean countries; exceptions to this trend were Denmark, Germany, Ireland and France. Similarly, wage inequality declined in around two-thirds of EU countries (see final column in table), although there is no significant association between the changes in average wage levels and in wage inequality levels. [...]
Some groups within the workforce benefited more from this development than others. As the figure below illustrates, wage gains were significantly higher among the youngest and oldest age groups; employees with lower educational attainment; female employees; part-time employees; employees working in smaller companies; and employees in low-skilled occupational categories (blue-collar especially but also white-collar to a lesser extent). In terms of economic sector, employees working in services benefited greatly. For instance, those working in arts, entertainment and recreation saw the highest wage boost, although employees in other service sectors – including information and communication, and real estate, professional and administrative activities – also saw substantial gains. Increases among employees in construction and retail, though lower, were still higher than average. [...]
Moreover, the beneficial effects of the minimum wage policy on real wage growth and the wage cohesion of the German workforce seem to have come at no significant price. Employment data show the employment prospects of those employees who have benefited more from the introduction of the minimum wage have not deteriorated, proving that fears about the potential dis-employment effects of the policy were exaggerated. The German unemployment rate has indeed gradually declined from above 5% in 2014 to less than 4% in 2017, the lowest rate among EU-28 countries after that of the Czech Republic.
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