The discussion about increasing the minimum wage is specific in Albania.
The text shows some options relating to the link between minimum wage and the consume of the base of the pyramid scheme of personal income taxation.
Because the minimum wage labor is a contributor to the cost of economy we tend to examine the no and yes regarding the increase of the minimum and to evaluate the effects of this policy. Real minimum wage has increased more than two times since 2000. We conclude that the increases in the minimum wage are a useful means of raising wages in the lower part of the wage distribution that has little or no effect on employment and hours.
The purpose of the presentation of estimation is to have the attention of tax policy experts and analysts, as far as good also to attire the attention of group of interest and scholars. We aim to have opinions about this presentation. The calculation used in this document are based on INSTAT and Ministry of Finance Bulletins, and also in internal sources of ALTAX.