Publication detail

Minimum Wage: Development and Economic Consequences in the Czech Republic

Author(s): PhDr. Kamila Fialová ,
Type: IES Working Papers
Year: 2007
Number: 12
ISSN / ISBN:
Published in: IES Working Papers
Publishing place: Praha
Keywords: wage, poverty, regional unemployment
JEL codes: I38, J31, J38
Suggested Citation:
Grants: GACR 402/05/H510 Ekonomická teorie politických trhů
Abstract: The paper summarises the results of various economic concepts of minimum wage. Consecutively, it presents an analysis of the minimum wage development in the Czech Republic since its introduction in 1991 and of the impact of substantial changes in its level, which can be observed since 1999. The attention is focused on both its potential benefits in sense of reducing poverty and increasing the incomes of the poorest households, and on its potential negative impact on regional labour markets in sense of increasing unemployment. The results of the econometric analyses suggest that while there is a significant impact on increasing regional unemployment, potential benefits on raising incomes of the poor households seem to be insignificant. Therefore it seems valid to claim that minimum wage in the Czech Republic has not been a very purposeful instrument effective in decreasing poverty so far.
Downloadable: WP 2007_12 Fialova
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