Publication detail

Minimum Wage: Labour Market Consequences in the Czech Republic

Author(s): PhDr. Kamila Fialová ,
PhDr. Martina Mysíková Ph.D.,
Type: Articles in journals with impact factor
Year: 2009
Number: 3
Published in: Czech Journal of Economics and Finance
Publishing place: Prague
Keywords: minimum wage, employment probability, unemployment
JEL codes: E24, J38, J64
Suggested Citation: Fialová, K;., Mysíková, M. (2009): The Minimum Wage: Labor Market Consequences in the Czech Republic. Czech Journal of Economics and Finance, 59, 2009, no. 3, pp. 255-274.
Grants: Analysis of the Impact of the Selected Social Policy Instruments on the Czech Labour Market and a Broad International Comparison GACR 402/08/0501 (2008-2010) Political Economy of Public Spending
Abstract: 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 subsequent 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.




Patria Finance