Lars Calmfors. Photo: Jonas Ekströmer / TT
said Labour Economic Council Chairman Lars Calmfors at a press conference on Monday, where he presented the Council’s new report on the wage distribution.
– Lower starting wages could make a contribution. There is no magic bullet, it would be effects that would be of value. But there is no huge impact, said Council President Lars Calmfors.
He added that no other measure also gives some giant impact, whether in education, work tax credit and employment support.
– It is therefore necessary see the measures as a supplement, said Lars Calmfors.
Labour Economic Council proposes a new form of employment – input job – the social partners should negotiate. These entry level positions should have starting salaries “significantly below” current levels and jobs should be given to all new entrants into the labor market, mainly immigrants and young people, who can not obtain other jobs.
– A high and evenly employment is always a joint responsibility of governments and social partners, said Lars Calmfors, who argued that the social partners have not taken responsibility for changing relative wages when differences in skills has increased, and when the low-skilled groups for a long time lost in relation to highly qualified labor. The problem is aggravated by the high immigration.
– Are you serious about the need to prioritize employment, it should also influence the perception of relative wages, he said.
The Council sets a deadline for entry jobs on three years for people not permanently stuck in low-wage occupations.
– all will not have succeeded in three years, there is a trade-off between employment and those who get jobs get stuck forever there, said Lars Calmfors.
the government gives a grant through the abolition of social charges and a targeted jobs tax credit for the after-tax wage is not too low. No claim should be on the employer to training or supervision.
– It prevents there will be some large volumes. It has not worked in practice, said Lars Calmfors.
He said that the Council has tried to construct its proposal so that wages can not be pushed down to other groups who already have jobs, but that it is not possible to avoid such effects, an effect that many unions usually take up.
He urged LO to better regulate the lower starting salaries in collective agreements than the emergence of a large black sector in the wake of the increased refugee immigration.
– We hope that the ongoing debate as to modify the conditions, he said, adding that the law would be the wrong way to go if the parties do not agree.
Labour Economic Council specifies no level minimum wages should be reduced, but Lars Calmfors have a personal opinion.
– What we are talking about is something down to SEK 15 000 a month, there is a significant reduction from the minimum wages we see today, said he said.
Ann-Sofie Kolm, a member of the Labour Economic Council, said that with a larger earned income tax credit can have a larger cut in the minimum wage.
Lars Calmfors said that in the Swedish debate often sounds like lowering the minimum wage has no significant effect on employment in the research.
– this statement is not true. Clearly there is a preponderance of studies showing that higher minimum wages reduce employment, said Lars Calmfors adding that this is especially true for countries where minimum wages are already high to begin with, as in Sweden.
Of Sex completed Swedish studies in the field find four that higher minimum wages reduce employment.
Lars Calmfors added that anyway seems quite clear that higher minimum wages reduce employment in the most vulnerable groups, including studies find no negative effect on total employment.
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