Can the lowest wages be increased in euro-zone countries?
                                                            The governments  in France and Italy want to increase  the lowest  wages,  but  by  using  government transfer payments, not by  using  wage  increases   paid   by  companies; in Spain,  the  minimum wage will be increased  by  22%.   We therefore ask the following question: is it possible to increase the lowest wages (in Germany, France, Spain and Italy) without a very negative impact on employment?   We are clearly talking about increasing wages, not about government transfer payments  to  employees. To  try to answer this question, since the lowest wages are found in "domestic" services (retailing, leisure, transport, household services), we compare  nominal   per capita  value added in domestic services and nominal per capita wage s  in  the  same services. The idea is that if per capita wages are close to per capita value added, the cost in terms of employment  of an increase  in wage s  ( and  therefore  in  low wages) will be very  significant , which  should  discourage  governments from  carry ing  out  such an   increase . We  see that per capita wages are close to per capita value added in domestic services in France and Germany, and  much  lower   in Spain and Italy.