Advantages and disadvantages of raising the minimum wage
WILLEMSTAD - There are different advantages, but also disadvantages to raising the minimum wage. This is according to a research of the Central Bank of Curaçao and Sint Maarten (CBCS), which is in the hands of the Dutch newspaper Antilliaans Dagblad.
By raising the minimum wage, such as was suggested by the Member of Parliament for the coalition party PAIS, Eugene Cleopa, to about 2500 guilders per month, can boost the economic growth since the consumption will increase. But the wage increase makes it more expensive to do business in Curaçao. This could lead to a higher youth unemployment.
Another disadvantage is that it could lead to wage-price spiral, as companies will take these higher costs into their prices.
The CBCS says that the increase is only possible if there is an increase in labor productivity. This should also be a priority.