Fedea Argues that the Rise of the SMI in 2019 Destroyed Employment in Micropymes and Worsened Quality in Medium-Sized Enterprises.

Four researchers from Fedea analyze the effects of the 2019 rise and conclude that it reduced the hours worked and increased the temporality, although the large firms barely noticed it

A study by Fedea suggests that the 2019 increase in the minimum wage (SMI) had "large and significant effects" on companies that were affected by the increase. Specifically, it argues that companies of five or fewer workers destroyed jobs in the months following the rise. Furthermore, they add that the rise of the SMI increased job rotation, reduced permanent contracts and increased temporaryity in the affected companies. The report, prepared by…

The negative effects of the rise of the SMI on the labour market as a whole were limited, according to a new study by Fedea, with more impact on the smaller companies, of up to five employees.The IMF admits that the rise in the minimum wage has lifted one million workers out of poverty in Spain.A new study by the Fedea economic research center suggests that the historical rise in the minimum wage in 2019, of 22%, had “moderate” negative effects …

Fedea argues that there was a “significant impact” triggering partial contracts and template rotation after the first rises in 2019

Employment growth decreased 4.5 percentage points due to the 2019 increase in the minimum wage (SMI) in those companies in which all their workers were affected by the increase in this minimum income, although the impact was decreasing as the size of the company increased, with an effect on "insignificant" employment for companies of more than 50 workers.However, on average, the decrease in the employment growth rate was between 0.5 and a percen…