Minimum wage in Europe offers ammunition in US debate

"The impact on growth from changes in the minimum wage comes down to the level at which it is set," said Simon Tilford, chief economist at the CER in London. "Those set at moderate levels don’t have a negative impact on employment or growth. But clearly there is a risk that if it is raised too high, it can lead to problems."

"Much of the growth there has been from low-wage jobs, well below the minimum wage set in surrounding economies," Mr Tilford said. "This has priced people back into labor, but on wages that have to be subsidized by the government in various forms because people can’t live on those wages."