Minimum wage: pros and cons of an economic policy tool and the italian state

In the last years, especially in the European Union, because of the last external shocks such as pandemic and Ukrainian war, economies of countries received a higher or lower impact on their performance; The effects as nowadays are analyzed and observed are on inflation and employment, in other words our currencies are losing purchasing power and at the same time the unemployment is increasing. Governments and policy decision makers are trying to apply different tools and techniques to fix and heal this ill of our economic system. On the modern debate there is the proposal of an intervention called minimum wage as the name suggest is to set a minimum amount of hourly wage to the salary of a worker that all firms/employer must respect. Analyzed and defined by literature since years has a variety of both positive and negative components that should be considered while the decision to apply them is taken. Moreover, in our country, Italy, the discussion is quite critical and controversial and for two years is one of the most important matters on the table of our political system. So, the aim of this study is to specifically detect the topic on the economic theory to have a model on which then consider all the aspect of the tool. The further step is then to detect, on the base of the theory discussed, what are on the opinion of modern researcher, benefit, and malus of the measure on the different actors of the economic system. In the end the attention will be shifted and focused on the Italian state by reviewing the discussions of the last two years and understand by having all the information needed what could be the best option for the Italian environment.