The Minimum Wage: Labor Market Consequences in the Czech Republic

Czech Journal of Economics and Finance (Finance a uver), 2009, vol. 59, issue 3, 255-274

Abstract: This paper aims to quantify the impact of the minimum wage on labor market performance in the Czech Republic. Using regional data for 1995–2004, it estimates the effect of the minimum wage adjusted for the regional wage differential on regional unemployment. Consequently, using detailed individual data from 2004/2005, the authors analyze the annual hikes in the minimum wage, which allow them to estimate employment probabilities for workers with a wage level at, or close to, the new minimum wage. The aim is to reveal whether the most endangered groups of workers exhibited significantly different subsequent employment probabilities. The autors´ results reveal that the minimum wage has had a significant impact in terms of increasing regional unemployment and reducing the employment probabilities of low-paid workers.

Keywords: minimum wage; employment probability; unemployment (search for similar items in EconPapers)
JEL-codes: E24 J38 J64 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (8)

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Working Paper: Minimum Wage: Labour Market Consequences in the Czech Republic (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:fau:fauart:v:59:y:2009:i:3:p:255-274

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