Whereas ensuring that workers receive adequate wages is enshrined in the European Pillar of Social Rights, there is currently no widely accepted definition on what wage adequacy is, and therefore what constitutes an adequate wage. In fact, wage adequacy encompasses different dimensions related to within- and between- country wage inequalities; inter- and intra-industry wage differences; or migrant and gender pay gaps.
Open Evidence has recently been awarded a project on “New measures on wage adequacy” for the European Commission – DG EMPL in which we will explore the different dimensions of wage adequacy to assess the possibility of developing indicators to measure relative wage adequacy across the EU.
In a second step in the study, based on the developed indicators, we will identify trends in wage differentials which could explain the persistency of low-paid jobs for workers with certain characteristics. The persistency of low-paid jobs is problematic as it can lead to long-term poverty and in-work poverty. Wage inequalities can also pose significant threats to social cohesion and political stability at both EU and national level as large groups of the population may not feel that they are benefitting fairly from social and economic progress.
This project will help in quantifying any existing negative trends to help tackle inequalities across the EU.