Determining Factors of Minimum Wage in the Member States of the OECD

Undoubtedly, according to the literature, the minimum wage affects employment, consumer prices, inflation, student's enrollment levels in schools, exports, poverty, prosperity, demand and supply of products, labor and the general growth of a State. This article presents the results of a survey conducted using multiple regression. The main objective of this research was to find the factors that are determinants of the level of the minimum wage, the investigation of the existence of a relationship between the minimum wage and various aggregates and other indicators in the context of a state. This was achieved with the creation of a shuttle equation formed, which shows that of the 20 variables introduced in the model only the variables GDP billions US dollar, Net National Income per capita and GDP per hour worked, which affected the value of the minimum wage. Additionally, the survey results showed that the best predictor variable was GDP billions US dollar, followed by the rest of the model's variables but with continuously declining significance.