"Key points:
• There are three main approaches across OECD countries to tackling
low-wage employment: (i) state support for collective bargaining,
(ii) statutory minimum wages, and (iii) substantial in-work benefits
in addition to a statutory minimum wage.
• All countries maintain a wage floor in one of two ways: either through
a statutory minimum wage or by supporting the organisational
conditions for collective bargaining.
• Over time, statutory minimum wages have become increasingly
important, while state support for collective bargaining has
declined.
• State support for collective bargaining appears most successful in
containing low-wage employment.
• If they are high enough, statutory minimum wages can be effective
in reducing low-wage employment.
• In-work benefits foster more low-wage employment."

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