UTICAJ INFLACIJE NA MINIMALNE ZARADE ODABRANIH ZEMALJA SVIJETA I REGIONA

Abstract

This paper primarily examines the impact of inflation on minimum wages, with the main focus on analyzing inflation itself and the movement of minimum wages. The emphasis will also be on a comparative analysis of wages in other countries, as well as the correlation or relationship between inflation and wages. The main goal of the research is to understand how inflation affects the real purchasing power of citizens, particularly those with minimal wages or incomes, as well as to assess the effectiveness of economic policies in dealing with inflation. In the theoretical framework, which will form the second part of the paper, the types of inflation, its causes, and the impact of inflation on the economy and standard of living will be discussed. By analyzing the historical overview of minimum wages and their correlation with inflation, we will explore how minimum wages adjust during periods of high inflation. Indexation of minimum wages to inflation, tax breaks for employers and productivity incentives are some of the mechanisms that can mitigate the negative effects of inflation on the labor market. In the long run, price stability and economic growth are key factors that can contribute to increasing real wages and improving the living standards of all citizens.