"Minimum wage: opportunity or threat for the labor market?"

This paper focuses on the potential inclusion of a legal minimum wage within the Italian legal system, a much-debated topic that many believe could represent an ideal solution to address the class and gender disparities present in the current system. The phenomenon of the “working poor” (low-paid workers) is also continuously growing, not only in Italy but across Europe, and governments, both at the national and supranational levels, are working to address this issue, which is harmful to both society and economy. The minimum wage was first implemented in the United States in 1938, and has since then been adopted by numerous other countries. Currently, approximately 90% of states have some form of minimum wage, though these vary in their specific characteristics, making comparative analysis across them challenging. Italy, on the other hand, does not currently have a legally mandated minimum wage, with coverage instead provided through collective bargaining agreements. However, there have been recent discussions about the potential introduction of a legal minimum wage in the country. Given the empirical evidence that suggests the introduction of a minimum wage at an inappropriate level can have serious consequences for employment, it appears crucial to thoroughly examine the effects that such a reform would entail. The proposed study will undertake an in-depth analysis, utilizing the main labor market models and examining empirical studies conducted in various countries, in order to elucidate the theoretical relationship between the minimum wage and employment. The focus will be on the employment-level effects across different worker categories, with a particular emphasis on young and low-skilled workers. Chapter I will provide definitions of the labor market and minimum wage, and will establish the relationship between them. Chapter II will present the legal aspect, Chapter III will examine the issue at an international level, while Chapter IV will analyze the proposal for the introduction of a legal minimum wage in Italy, also delving into the guarantees of employment protections provided by Italian law, attempting to understand if the current system is truly effective and efficient for all workers. The ultimate goal is to determine whether the minimum wage represents an opportunity for improvement or a disruptive legislative measure, particularly in the current context.