One of the tools that merits rethinking is minimum wages. The main objective of a legislated minimum wage is to ensure a fair remuneration to workers that protects them against “abuse” from employers who may have market power. In part due to weaknesses in the social protection system, the minimum wage has also become an instrument to ensure a living wage. But the minimum wage can affect, depending on the level, (formal) job creation as a largely uniform minimum wage is applied to firms of varying productivity. It is important, thus, to rethink the minimum wage both because it adds to the cost of labor (particularly of low-productivity workers). The role of the minimum wage to ensure a livable wage is further weakened if universal social assistance and insurance is implemented. Yet, some countries set minimum wages at high levels: in low-income countries, minimum wages are, on average, 85 percent of the value added per worker; in middleincome and high-income countries, they are around 53 and 30 percent of the value added per worker, respectively

Restrictions on firms’ hiring and dismissal decisions can also create structural rigidities that carry higher social costs in the face of disruption. Bolivia, Oman and Venezuela, for example, do not allow contract termination for economic reasons, limiting grounds for dismissal to disciplinary and personal reasons. In 32 countries, the employer needs approval of a third party even in case of individual redundancies. In Indonesia, an approval from the Industrial Relations Dispute Settlement Board is required. It is important to give firms more flexibility in managing their human resources when the law already mandates proper advance notice.

Severance pay is another area ripe for reform. Severance is the most prevalent form of protection in case of redundancies in most low and middle-income economies that have not implemented unemployment benefit schemes. Some countries have extremely generous severance pay.

http://pubdocs.worldbank.org/en/816281518818814423/2019-WDR-Draft-Report.pdf

As soon as you stop fighting hard, capitalists return to that they always liked.