Work detail

Effect of minimum wages: do regional data tell a different story?

Author: Mgr. Tereza Májková
Year: 2017 - summer
Leaders: PhDr. Jaromír Baxa Ph.D.
Work type: Finance, Financial Markets and Banking
Language: English
Pages: 73
Awards and prizes:
Abstract: This thesis examines the effects of an increase of minimum wage level on unemployment,
employment, disposable income and risk of poverty. We contribute to the existing literature by
directly comparing results resulting from two similar datasets, one working with national, one with
regional data. We use different sets of explanatory variables to see whether they affect the results
of the estimation. On national level, our results confirm positive effect of minimum wages on
employment of adults and on disposable income – but these findings were not confirmed on
regional level. With respect to the regional perspective, the results are however subject to
substantial uncertainty and are prone to substantial sensitivity to empirical specification. We
attribute this uncertainty mainly to the quality of the data – small number of observations together
with large heterogeneity.


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