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Volume 52, Issue 11


Minimum-Wage Increases and Employment: Empirical Evidence from the Czech and Slovak Republics

Eriksson, Tor; Pytlíková, Mariola

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


RePEc: n/a

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