2 What are the effects of a minimum wage set below the equilibrium wage? In Europe, minimum wages policies are widespread but rates vary. They are highest in France at 60 per cent of the median wage and lowest in the Czech Republic at 34 per cent. The UK minimum wage, now called the National Living Wage, was for those over 25 is £7.20 in 2016, or 55 percent of the median wage.

Does the minimum wage result in unemployment, and if so, how much unemployment does it create?