SOCOL CRISTIAN| MARINAS MARIUS MINIMUM WAGE AS A PUBLIC POLICY INSTRUMENT – PROS AND CONS IMF(2016a) considers that"the minimum wage increase and its ripple effect across wage distribution gave boost to short-term consumer spending" and consequently to the economic growth. Moreover,"the minimum wage increase had a direct effect on wage distribution, raising the income of a relatively large number of employees at the bottom part of the wage distribution and narrowing wage gaps between high and low pays". The analysis of the comparative evolution of the minimum-to-average wage ratio and of the wage gap(the ratio of the employment income of decile D10- the richest 10% of households- to the one in decile D1- the poorest 10%) confirms the facts stated above, especially in the last two years(Figure 21). Figure 21. Dynamics of the share of the minimum wage in the gross average earnings vs. wage gap dynamics 45 24 Ponderea salariu minim î n Decalajul salarial c âș tigul mediu 22 40 20 18 35 16 30 netradu 1 s 4 12 25 10 2007 2008 2009 2010 2011 2012 2013 2014 2015 S ource: FMI, 2016a 9. Was the minimum wage dynamics correlated to the evolution of the minimum income for a decent living standard and subsistence? The level and dynamics of the minimum wage should be correlated with the dynamics of the minimum consumer basket. To test this connection, we used the consumer basket for a minimum decent living standard and the one required to assure the minimum subsistence level, as calculated by Mihăilescu(2012)(researcher at the Quality of Life Research Institute of the Academy of Romania) for the 2001-2011 period. For 2012-2015, we extrapolated the normative method used by the author by inflating/deflating the minimum consumer basket of the previous year considering the specific annual specific weighting factor of the households of employees and the year-on-year Consumer Price Index(CPI) related to these categories in October. Unlike the minimum subsistence basket, the minimum decent basket also takes into account expenses related to the participation of the person in social development activities(information, culture, travel). We mention that the minimum consumer basket in Romania was officially calculated in 2000-2003 in accordance with the Emergency Ordinance of the Government No. 217/2000. We tested the correlation between the minimum wage, the decent living minimum income and the subsistence minimum income for three categories of households: with 2 minimum wages and 2 child benefits, with 2 minimum wages and one child benefit and with 2 minimum wages. 29