AMBIGUOUS EFFECTS OF MINIMUM WAGE TOOL OF LABOUR MARKETS REGULATION – KEY STUDY OF V4 COUNTRIES

Emilie Jasova; Bozena Kaderabkova

doi:10.52950/ES.2021.10.2.004

Authors

Emilie Jasova University of Finance and Administration Prague, Czech Republic Author
Bozena Kaderabkova Prague University of Economics and Business, Czech Republic Author

DOI:

https://doi.org/10.52950/ES.2021.10.2.004

Keywords:

Minimum wage, Rate of unemployment by educational attainment, Long-term unemployment, Average hours actually worked per week, Temporary employees

Abstract

In this paper, we analyze the effect of minimum wage changes on selected labour market indicators such as duration of employment, hours worked, unemployment by education or profession, and long-term unemployment. Our research is based on Eurostat and OECD data for V4 countries. The hypothesis examined is whether the effect of minimum wage increases is positive or negative, and we also discuss the issue of economic regulation more generally. The estimated regression coefficients for all V4 countries show that the effects are more positive than negative. Mapping the overall intensity of the effects of the minimum wage on selected labour market indicators in the Czech Republic and Hungary indicates low sensitivity. The effects are very weak in Slovakia and Poland. The results of the analysis are consistent with domestic and international research in 13 cases, while differing in 6 cases. Overall, the findings more often confirm positive effects of the minimum wage on selected labour market indicators than negative effects.

Data:
Received: 16 Sep 2021
Revised: 11 Nov 2021
Accepted: 6 Dec 2021
Published: 20 Dec 2021