Minimum-Wage Increases and Employment: Empirical Evidence from the Czech and Slovak Republics
Year: 2002 Volume: 52 Issue: 11 Pages: 614-615
Abstract: Minimum wages were raised considerably in the Czech and Slovak Republic from 1999 to 2001. Using information from matched employee-employer data sets, we looked at the impact of minimum- wage hikes on both wages and employment. Our results suggest that although there was no evidence of substantial job loss given the minimum-wage hikes, the impact on firms’ wages was rather significant, implying that a wage increase of a similar magnitude could well have a negative effect on employment, especially in smaller firms operating in competitive markets.
JEL classification: J3, H3
Keywords: labor market; minimum wage; employee-employer data; wages
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