When the UK minimum wage came into force in 1999, the rate was set at £3.60 an hour. The trade union movement argued at the time that this was too low to make a significant impact on poverty pay, while the business community claimed that the minimum wage would price workers out of the market and drive small businesses to the brink of extinction.

The same debate is now taking place in other countries, such as Germany and Israel. This article examines the evidence on the impact of the minimum wage on jobs, youth employment and the economy. It also looks at the relationship between the minimum wage and the living wage.

A full set of additional references and links are provided so that readers can pursue various elements of the debate.

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