Minimum wage: Labour market consequences in the Czech Republic

Arbeitspapier

This paper aims to quantify the impact of the minimum wage on labour market performance in the Czech Republic. Using regional data for 1995-2004, it estimates the effect of the minimum wage adjusted for regional wage differential on the regional unemployment. Consequently, using detail individual data from 2004/2005, we analyze the annual hikes in the minimum wage that allow us to estimate employment probabilities for workers with 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 employment probabilities. Our results reveal that the minimum wage has had a significant impact on increasing regional unemployment and reducing the employment probabilities of low-paid workers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IES Working Paper ; No. 6/2009

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Wages, Compensation, and Labor Costs: Public Policy ; Unemployment: Models, Duration, Incidence, and Job Search
• Subject: minimum wage ; employment probability ; unemployment ; Mindestlohn ; Arbeitsmarkt ; Arbeitslosigkeit ; Tschechische Republik

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fialová, Kamila ; Mysíková, Martina
• Event: Veröffentlichung
• (who): Charles University in Prague, Institute of Economic Studies (IES)
• (where): Prague
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/83311
• Last update: 10.03.2025, 11:44 AM CET