Zitatform

Abbate, Nicolás & Bruno Jiménez (2026): Do minimum wage hikes lead to employment destruction? Evidence from a regression discontinuity design in Argentina. In: Journal of Development Economics, Jg. 178. DOI:10.1016/j.jdeveco.2025.103558

Abstract

"In this study, we examine the impact of eight minimum wage increases in Argentina during the early 21st century by analyzing administrative records of registered employment. Utilizing a regression discontinuity design, we compare job separation rates between a group affected by the minimum wage hikes and a control group slightly out of their legal scope. Our findings indicate that, overall, these minimum wage hikes had no significant impact on separation rates. However, the 2008 increase triggered a 4.8 percentage point (19%) decrease in separations, casting doubt on the disemployment effects of minimum wages. Overall, these findings suggest that during economic upswings, minimum wage increases may have little to no adverse impact on job destruction." (Author's abstract, IAB-Doku, © 2025 Elsevier B.V. All rights are reserved, including those for text and data mining, AI training, and similar technologies.) ((en))

Zitatform

Carta, Francesca & Fabrizio Colonna (2026): Minimum income and household labour supply. In: International Tax and Public Finance, Jg. 33, H. 2, S. 514-547. DOI:10.1007/s10797-025-09918-4

Abstract

"This paper examines the impact of Guaranteed Minimum Income (GMI) schemes on work incentives at the household level. We show that these schemes create strategic complementarities between partners’ employment decisions. When one partner is non-employed or earns a low wage, the household is more likely to receive the benefit, which discourages the other partner from working to avoid losing the benefit. The disincentive to work does not instead apply to partners of high earners whose income exceeds the programme threshold. This leads the partners to coordinate their decisions so that both are non-employed. The negative impact of the GMI on labour supply is therefore more pronounced in economies with many single-earner households. Focusing on Italy, where the employment rate of married women is low and a relatively generous GMI programme was introduced in 2019, we use a structural labour supply model to estimate that the GMI would primarily reduce the employment rate of married men with non-working wives and increase the number of households in which neither partner works. Married women would be less affected due to the high employment rate of their husbands." (Author's abstract, IAB-Doku, © Springer-Verlag) ((en))

Zitatform

Frangioni, Tommaso & Stella Volturo (2026): Organising Changes: The Institutional Work Behind the Implementation of a Minimum Income Scheme. In: Social Policy and Administration, Jg. 60, H. 4, S. 596-605. DOI:10.1111/spol.70026

Abstract

"Policy implementation at the local level is often influenced by the interplay between institutional frameworks and the discretionary power of street-level bureaucrats. This study examines how local welfare agencies in two Italian regions have reacted to the introduction of the Reddito di Cittadinanza (RdC), the Italian minimum income scheme. Through qualitative research, including interviews with social workers and their managers, this study explores how local actors mediate national policies and navigate structural constraints in a rapidly changing context, adapting the measure and at the same time reorganising their working contexts. The findings show that the implementation of the RdC has led to significant organisational adaptations, including the emergence of informal coordination mechanisms and new forms of professional discretion. Whilst the policy was designed to standardise welfare practises, its practical application varies across local contexts, highlighting the tensions between national mandates and local agency. The findings underscore the pivotal role of street-level bureaucrats in shaping policy implementation, often serving as conduits for interpreting and adapting measures to align with local needs. This research contributes to the extant literature on policy implementation by demonstrating the value of an organisational perspective in understanding welfare policy processes, transcending the conventional divide between top-down and bottom-up approaches. The study's findings imply that a sustained investment in local capacities is important to ensure the efficacy of policy measures. Future welfare reforms could benefit from the insights of this case study by integrating local agency and professional expertise into social policy design." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

Zitatform

Hijzen, Alexander, Mateo Montenegro & Ana Sofia Pessoa (2026): Minimum Wages in a Dual Labor Market: Evidence from the 2019 Minimum-Wage Hike in Spain. In: Labour Economics, Jg. 98. DOI:10.1016/j.labeco.2025.102826

Abstract

"This paper provides an assessment of the 2019 minimum-wage hike in Spain, which increased the minimum wage by 22% and directly concerned 7% of dependent employees. We make use of two complementary approaches, one that follows incumbent workers over time and hence does not take account of any possible effects on new hires, and one that tracks employment in wage bins over time and takes account of both separations and new hires. The results are as follows. First, the minimum wage hike significantly increased the wages of directly affected workers, with small positive wage spillovers on workers with initial wages just about the new minimum wage. Second, the increase in wages comes at the expense of a reduction in low-wage employment. While employment increases just above the minimum wage, it is not sufficient to offset the decline in employment below it. Third, the reduction in employment is mainly driven by a reduction in hires of workers on open-ended contracts and to a smaller extent job losses among workers on fixed-term contracts." (Author's abstract, IAB-Doku, © 2025 Elsevier B.V. All rights are reserved, including those for text and data mining, AI training, and similar technologies.) ((en))

Zitatform

Morlin, Guilherme Spinato, Marco Stamegna, David Cano Ortiz, Simone D’Alessandro & Pietro Guarnieri (2026): Tackling labor market inequalities through minimum and maximum wages. In: Economic Modelling, Jg. 157. DOI:10.1016/j.econmod.2026.107495

Abstract

"Income inequality in labor markets arises from both inadequate pay at the bottom and excessive remuneration at the top of the wage distribution. Statutory minimum wages have proven effective in addressing low wages and in-work poverty, yet many countries have not fully implemented them. Conversely, salary caps have received relatively little attention as instruments to limit top incomes. This paper examines the effects of introducing both minimum and maximum wages in Italy using Eurogreen, a macro-simulation model that integrates a dynamic input–output framework with labor market heterogeneity. Our findings indicate that the joint implementation of these policies substantially reduces labor market inequalities without compromising overall economic performance. Minimum wages help mitigate disparities across skill levels, occupational groups, and industrial sectors, while maximum wages are particularly effective in narrowing the gender pay gap. These results suggest that well-designed wage policies can serve as powerful tools for fostering more inclusive and equitable labor markets." (Author's abstract, IAB-Doku, © 2026 Elsevier B.V. All rights are reserved, including those for text and data mining, AI training, and similar technologies.) ((en))

Zitatform

Černiauskas, Nerijus & Jose Garcia-Louzao (2026): The earnings distribution in Lithuania: the role of the minimum wage. In: Journal of Economic Inequality, Jg. 24, H. 2, S. 487-507. DOI:10.1007/s10888-025-09692-7

Abstract

"In this paper, we investigate how the minimum wage has shaped the earnings distribution in Lithuania between 2010 and 2019. We rely on a distribution regression framework and detailed Social Security records to characterize the earnings distribution along with the minimum wage incidence at a monthly frequency. According to our preferred estimates, our results imply that minimum wage increases can explain about 32% (40%) of the decline in total (bottom-tail) earnings inequality and up to 20% of average earnings growth." (Author's abstract, IAB-Doku, © Springer-Verlag) ((en))

Zitatform

Albertini, Julien, Arthur Poirier & Anthony Terriau (2025): Payroll Tax Reductions on Low Wages and Minimum Wage in France. (Working paper / GATE Lyon Saint-Étienne 202501), Lyon ; Saint-Étienne, 44 S.

Abstract

"Introduced in France in the 1990s to reduce the cost of low-skilled labor, payroll tax reductions on low wages were later expanded and extended to higher wages. This study evaluates the impact of the current payroll tax schedule on employment, fiscal surplus, and welfare. We develop a life-cycle matching model in which workers are heterogeneous in terms of age, education, human capital, family status, hours worked and idiosyncratic productivity, and where search effort, hiring and separations are endogenous. Accounting for interactions with the socio-fiscal system, we demonstrate that reducing payroll tax cuts for low wages would result in declines in both employment and fiscal surplus. Furthermore, we show that increasing the minimum wage would significantly reduce employment and fiscal surplus, with the magnitude of the effect depending on whether the payroll tax schedule and other socio-fiscal measures are indexed to the minimum wage. Lastly, we identify the optimal payroll tax schedule, revealing that employment, fiscal surplus, and welfare can all be improved by increasing payroll tax reductions for wages near the minimum wage while reducing them for wages exceeding twice the minimum wage." (Author's abstract, IAB-Doku) ((en))

Zitatform

Brochu, Pierre, David A. Green, Thomas Lemieux & James Townsend (2025): The Minimum Wage, Turnover, and the Shape of the Wage Distribution. In: Journal of labor economics, S. 1-58. DOI:10.1086/740189

Abstract

"This paper models the distributional effects of minimum wages using a hazard-based approach that rescales the wage distribution to control for possible employ-ment effects. Contrary to the predictions of a neoclassical model, Job Leaversare not concentrated below the new minimum wage following a minimum wageincrease. For Job Stayers, the spike and spillover effects of the minimum wageare simply shifted right to the new minimum wage. These findings are consistentwith a model where entry wages are set according to a job ladder, and where firmspreserve their internal wage structure due to fairness or internal incentives issues." (Author's abstract, IAB-Doku) ((en))

Zitatform

Chen, Jiwei & Zhigang Xu (2025): Can minimum wage increases narrow the gender wage gap? Evidence from China. In: Applied Economics, Jg. 57, H. 52, S. 8726-8744. DOI:10.1080/00036846.2024.2402953

Abstract

"Using data from the 2011–2019 China Household Finance Survey (CHFS), this paper examines the effect of minimum wage increases on the gender wage gap. The results show that minimum wage increases can significantly reduce the gender wage gap. We further examine the impact of minimum wages on the gender wage gap across the wage distribution and find that minimum wages are conducive to narrowing the gender wage gap at the bottom and middle parts of the wage distribution, but not conducive to reducing the gender wage gap at the upper part of the wage distribution. We also identity heterogeneous effects of minimum wages on the gender wage gap across age, education level, hukou, and work unit. Finally, we find that minimum wages have a negative effect on low-wage workers’ employment. Therefore, governments need to weigh their role in reducing the gender wage gap against the potential negative employment effects when adjusting the minimum wage standard." (Author's abstract, IAB-Doku) ((en))

Zitatform

Derenoncourt, Ellora, Francois Gerard, Lorenzo Lagos & Claire Montialoux (2025): Minimum Wages and Informality. (CEPR discussion paper / Centre for Economic Policy Research 20797), London, 32 S.

Abstract

"How do minimum wages affect informality? We study the near-doubling of the real minimum wage from 2000 to 2009 in Brazil, where 46% of the workforce is informal. Using labor force surveys covering the informal sector, we show the minimum wage exhibits near full passthrough to informal employees working in formal firms, about half of all informal employees. The formal-to-informal reallocation elasticity with respect to the formal wage is small: -0.28. Our findings illustrate how minimum wages can positively affect living standards for workers thought beyond the reach of labor law, a sizable share of the workforce in developing economies." (Author's abstract, IAB-Doku) ((en))

Zitatform

Kazekami, Sachiko & Masahiro Abe (2025): Effects of minimum wage changes on labor demand: analysis using job postings data. In: Applied Economics, S. 1-16. DOI:10.1080/00036846.2025.2579945

Zitatform

Kim, Jung Hyun, Marc Suhrcke & Anja K. Leist (2025): The unintended effects of a large minimum wage increase on health: Evidence from South Korea. In: Social Science & Medicine, Jg. 365. DOI:10.1016/j.socscimed.2024.117626

Abstract

"The 2018 minimum wage increase in South Korea was a major policy change that impacted employment and labour productivity, but its effects on health have not yet been explored. The minimum wage was increased by 16.4% in January 2018, marking the largest increase over two decades and a substantial increase by international standards. While this policy change was a promise of the then-new government, the magnitude of its increase was unexpected. Using a difference-in-differences design with data from the 2016 and 2018 Korean Longitudinal Study on Aging, this study focuses on individuals targeted by the minimum wage policy, particularly older adults earning the minimum wage. Unexpectedly, our results indicate a statistically significant decrease in cognitive function within the targeted group, following the minimum wage hike. However, we did not observe any significant changes in self-reported health. Importantly, for the period 2014 and 2016, when the minimum wage increase was relatively modest, we found positive effects on cognitive health and no negative effects on self-reported health, suggesting that negative effects on cognition emerged only with the large minimum wage increase in 2018. These perhaps unexpected findings may be explained by a significant reduction in the working hours of the targeted group." (Author's abstract, IAB-Doku, © 2024 TheAuthors. Published by Elsevier Ltd.) ((en))

Zitatform

Kozák, Michal & Georg Picot (2025): The politics of the minimum wage: Explaining introduction and levels. In: BJIR, Jg. 63, H. 1, S. 161-179. DOI:10.1111/bjir.12836

Abstract

"There is much economics research on the effects of minimum wages, but little research on their politics. Yet, ever more advanced capitalist democracies have introduced minimum wages, and the setting of minimum wage levels has become increasingly politicized. This article is the first comprehensive study of the politics of the minimum wage: We analyse the determinants of adopting minimum wages as well as what explains variation in their levels over time, based on a dataset of 33 OECD countries from 1960 to 2017. We find that the decline in collective bargaining is the main driving force behind the introduction of ever more minimum wages. At the same time, left-wing parties in government are most likely to adopt a minimum wage when bargaining coverage is low. Left governments are also associated with higher minimum wages, especially when the government has full control over level-setting." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

Zitatform

Liu, Enmeng, Weijie Wang & Xiaoyang Yao (2025): How does the minimum wage increase the incomes of low-income residents? In: Applied Economics, S. 1-17. DOI:10.1080/00036846.2025.2589450

Abstract

"The minimum wage system aims to raise the incomes of low-income residents for common prosperity; however, conflicts of interest may affect policy effectiveness. Although employment, enterprise compliance, and government support can help raise low-income residents’ incomes, most studies overlook the interactions among low-income residents, enterprises, and the government under the minimum wage system. Therefore, this study analyzes the effect of the minimum wage on low-income residents’ incomes via enterprises’ employment and training and explores the government’s role in reducing negative impacts. This study constructs a tripartite evolutionary game model incorporating low-income residents, enterprises, and the government. The results show that employment, enterprises’ compliance with minimum wage standards, and government support of the minimum wage system constitute stable equilibrium points, which increase low-income residents’ incomes. The policy simulation results show that an appropriate minimum wage attracts low-income residents to employment. Combined with training subsidy policies with positive spillover effects, this increases the upper limit of the minimum wage for enterprises and breaks the vicious cycle of low skills leading to low incomes. Furthermore, maintaining a proper gap between the minimum wage and unemployment insurance and ensuring moderate supervision and punishment allow the minimum wage to effectively increase low-income residents’ incomes." (Author's abstract, IAB-Doku) ((en))

Zitatform

López-Bazo, Enrique, Raul Ramos, Vicente Royuela, Oscar Molina, Pablo Sanz De Miguel & Carlos Vacas‑Soriano (2025): Impact of national minimum wages on collective bargaining and wages for low-paid workers. (Eurofound research report / European Foundation for the Improvement of Living and Working Conditions), Dublin, 101 S. DOI:10.2806/2659787

Abstract

"Increases in national minimum wages can have various knock-on effects – they can, for instance, lead to wage rises more generally and can influence the social partners’ latitude in collective bargaining. This report examines how changes to national minimum wages affect collectively agreed and actual wages in selected low-paid jobs and sectors. A quantitative analysis uses the Eurofound database on minimum wages for low-paid workers in collective agreements to analyse the impact of national minimum wages on collectively agreed minimum wages. Data from European Union Statistics on Income and Living Conditions are used to analyse the impact of national minimum wages on actual wages. A qualitative analysis is based on national case studies of the residential and social care and the manufacture of food and beverages sectors in six Member States: France, Germany, Portugal, Romania, Slovenia and Spain. These Member States were selected because they differ in terms of the interaction between national minimum wages and collectively agreed wages. The analysis finds that, generally, there is a positive association between national minimum wage uprates and changes to both actual and negotiated wages in low-paid sectors, although there are differences among the countries." (Author's abstract, IAB-Doku) ((en))

Zitatform

Monray, Jorge & Juan Morillo (2025): Minimum Wage and Effects on Unemployment: The Case of Spain and Its Implications on Simpson’s Paradox and Geographical Mobility. In: International journal of economics and finance, Jg. 17, H. 2, S. 26-44. DOI:10.5539/ijef.v17n2p26

Abstract

"This research explains the effects of the Government’s regular increases in the minimum wages on unemployment in Spain. Using a longitudinal analysis covering the years 2010 to 2023 the research collects data split by gender, age group, and Autonomous Community (AC). The data has been adjusted calculating the minimum wage Mean and Mode values. A negative or inverse correlation between minimum wage variables and unemployment is observed presenting Pearson values between -0.4 and -0.6 in most groups. Also, the research applies a one-way ANOVA test. It shows findings of unemployment reduction, specifically in the categories of young males, even though, the minimum wage in Spain has been regularly increased during the last years, in line with other authors. The aggregated and disaggregated data obtained vary and move in opposite directions confirming in a certain way that the principle of the Simpson’s Paradox could take place here. The research also confirms a relevant Estimated Size Effect (ETA) when comparing Autonomous Communities and their influence on unemployment for 55+ years old people." (Author's abstract, IAB-Doku) ((en))

Zitatform

Nicolitsas, Daphne (2025): The Minimum Wage in Greece: A Review of Institutional Features, Developments and Effects Between 1975 and 2023. In: Jahrbücher für Nationalökonomie und Statistik, Jg. 245, H. 1-2, S. 79-111. DOI:10.1515/jbnst-2023-0041

Abstract

"This paper takes a historical perspective and assesses the evolution of the institutional features in setting the minimum wage in Greece between 1975 and 2023. It also evaluates developments regarding the minimum wage level, its bite and alignment with productivity. The paper reviews the limited available empirical literature on the association of the minimum wage with labour market outcomes (average wages, employment, inequality). It presents new estimates of the elasticity of average wages to the minimum wage. One of the paper’s key points is that the minimum wage setting mechanism has changed over time as the economic environment has changed. Reviewing the evolution of the minimum wage over time to evaluate whether the minimum wage follows productivity developments and whether the minimum wage bites leads to the second and third takeaways of the paper. The minimum wage follows productivity developments over the longer term but not always in the short term. The bite of the minimum wage is high and appears to be higher when government intervention in setting the minimum wage is stronger. As for the impact of the minimum wage on average wages, the new estimates of the elasticity of the average to the minimum wage the paper provides, use more precisely measured wage rates, which show a high elasticity of average to minimum wages. Finally, the review of the existing literature on the employment effects of the minimum wage shows that, as in other countries, the results are mixed with modest negative or no effects." (Author's abstract, IAB-Doku, © De Gruyter) ((en))

Zitatform

Redmond, Paul & Seamus McGuinness (2025): The impact of a minimum wage increase on hours worked: heterogeneous effects by gender and sector. In: Economica, Jg. 92, H. 365, S. 84-106. DOI:10.1111/ecca.12555

Abstract

"A minimum wage increase could lead to adverse employment effects for certain subgroups of minimum wage workers, while leaving others unaffected. This heterogeneity could be overlooked in studies that examine the overall population of minimum wage workers. In this paper, we test for heterogeneous effects of a minimum wage increase on the hours worked of minimum wage employees in Ireland. For all minimum wage workers, we find that a 10% increase in the minimum wage leads to a one-hour reduction in weekly hours worked, equating to an hours elasticity of approximately −0.3. However, for industry workers and those in the accommodation & food sector, the impact is larger, with elasticity −0.8. We also find a negative impact on the hours worked among men on minimum wage, with no significant effect for women. This is due to the disproportionate number of men working in sectors that show the greatest impact on hours. In line with suggestions from the recent literature, we attempt to identify directly those in receipt of minimum wage using hourly wage data, while also studying the dynamic impact on hours worked over multiple time periods using a fully flexible difference-in-differences estimator." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

Zitatform

Redmond, Paul, Seamus McGuinness & Elish Kelly (2025): Labour Market Dynamics of Minimum Wage Workers. (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 17598), Bonn, 16 S.

Abstract

"Ireland is the only country in Europe with a direct question in its Labour Force Survey to identify minimum wage employees. By combining this with the longitudinal component of the Labour Force Survey, we examine the labor market transitions of minimum wage employees over a period of up to five quarters. After one quarter, just over half of minimum wage employees are still on minimum wage while 28 percent have moved to higher pay. After one year, almost half have moved to higher pay, with just one-third remaining on minimum wage. Employees that move to higher pay are more likely to change jobs compared to those that stay on minimum wage. Despite this, the majority (almost 90 percent) of minimum wage employees that transition to higher pay do so with the same employer. We employ a dynamic random effects probit model to estimate the degree of genuine state dependence of minimum wage employment. While there is some degree of true state dependence, much of the persistence in minimum wage employment is due to observed and unobserved heterogeneity, whereby minimum wage employees possess characteristics that result in them entering, and staying on, minimum wage. Our results also indicate that minimum wage employees are about five times more likely than higher paid employees to transition into economic inactivity. However, the majority of these are young people in education, and as such may not be overly concerning to policymakers." (Author's abstract, IAB-Doku) ((en))

Zitatform

Salverda, Wiemer (2025): The Netherlands’ Minimum Wage 1969–2022: Can We Learn from Decline? In: Jahrbücher für Nationalökonomie und Statistik, Jg. 245, H. 1-2, S. 45-78. DOI:10.1515/jbnst-2023-0036

Abstract

"This paper evaluates the evolution of the Dutch minimum wage since its introduction in 1969 and discusses this as an intriguing case suggesting that a deeper, economic analysis of firm and employee behaviors is required for minimum-wage analysis in general. The real level of the minimum wage has fallen tremendously after 1979, all the way back nowadays to the level of the early 1970s, due to the system of uprating and to government interventions. The minimum-wage employment share shows an even stronger decline after 1979, but, surprisingly, the share below the unchanged real minimum wage of 1979 and in bands above this has remained largely unchanged. Intriguingly, firms have continued paying the same. Composition shifts in minimum-wage employment are significant, towards larger enterprise on the demand side and towards part-time employees on the supply side. Nationally and internationally, virtually all available minimum-wage analyses of employment effects focus on rises of the minimum wage and ignore drops. However, OECD data show that declines are surprisingly frequent, making them perfectly normal economic occurrences that firms will account for. I argue that declines deserve examination in their own right, certainly also from a monopsonistic perspective. Plausibly, declines incite different responses from increases, and their analysis will require the examination of heterogeneous behavior of both firms and employees. Such analysis will reinforce the economics of minimum-wage analysis as advocated by David Neumark and its integration in labor economics as advocated by David Card." (Author's abstract, IAB-Doku, © De Gruyter) ((en))

Zitatform

Steenks, Koen, Arjan Heyma & Tobias Vervliet (2025): The Effects of Dutch Youth Minimum Wage Increases on Income Inequality. In: De Economist, Jg. 173, H. 2, S. 299-330. DOI:10.1007/s10645-025-09451-z

Abstract

"This study employs increases in the Dutch Youth Minimum Wage (YMW) in 2017 and 2019 for certain age groups as a natural experiment to examine the impact of changes in minimum wages on income inequality through the employment-channel. Using the Difference-in-Difference (DiD) and Two-Stage Least Squares (2SLS) methods, it estimates the effects of YMW increases on hourly wages and working hours across various income segments. These effects are then used to simulate the monthly income distribution after the YMW increases in 2017 and 2019. This way, a comparative analysis is conducted between the observed income distribution prior to the YMW increases and the simulated income distribution thereafter, focusing on the aspect of income inequality. The findings reveal distinct effects based on the magnitude of the wage increase. Modest increases (for individuals aged 18–19) and substantial increases (for individuals aged 20–22 in 2017 and 20–21 in 2019) both generate spike and spillover effects, influencing individuals earning hourly wages up to at least 120% of the new minimum wage. Small increases reduce working hours for higher-income individuals, while larger increases negatively affect working hours for middle-income earners (100–150% of the new YMW) but benefit those earning below 100% and above 150% of the new threshold. Overall, both small and large YMW increases contribute to income redistribution by altering wages and working hours." (Author's abstract, IAB-Doku, © Springer-Verlag) ((en))

Zitatform

Özmen, Mustafa Utku & Belgi Turan (2025): Two birds, one stone: minimum wage and child labor. In: International Journal of Manpower, Jg. 46, H. 1, S. 168-196. DOI:10.1108/ijm-08-2023-0440

Abstract

"Purpose: This paper investigates the impact of quasi-exogenous and substantial increases in the minimum wage on child labor outcomes in Türkiye. The study aims to provide empirical evidence on how minimum wage policies affect child labor outcomes in a developing country context, with a focus on gender and age differences. It seeks to understand whether minimum wage increases lead to a reduction in child labor and whether the impact is different for various demographic groups. Design/methodology/Approach: The research employs a difference-in-differences methodology using data from the 2012 and 2019 Child Labor Force Survey in Türkiye. The treatment group consists of children from households with minimum wage earners, while the control group comprises children from other households. Various labor market outcomes are analyzed, and robustness checks are performed. Findings: Our findings indicate that while the overall effect of minimum wage increases on child labor is statistically insignificant, there are notable heterogeneous impacts across different demographic groups and employment sectors. Specifically, we observe a significant reduction in the employment probability of girls under the age of 15 and unpaid family workers. Additionally, the likelihood of younger children being wage earners decreases, and the minimum wage increase reduces employment in the agriculture and services sectors for certain subgroups. The impact is also more limited for children in single-adult-worker households. Social implications: These results underscore the varying effects of minimum wage policies on child labor and highlight the importance of considering demographic and sectoral differences in policy formulation. Policymakers should complement such policies with income-generating programs and targeted education initiatives to address child labor issues more comprehensively and sustainably. Originality/value: This study fills a critical gap in the limited international literature on the causal effects of minimum wage policies on child labor incidence. One notable exception, Menon and van der Meulen Rodgers (2018) have explored the impact of minimum wage on child labor in India using regional variation, our study uniquely analyzes the effects at the household level in Türkiye. This approach provides valuable insights into how minimum wage changes affect child labor outcomes in a developing economy context with a high prevalence of minimum wage earners. It also contributes to the broader economic understanding of child labor and household income dynamics." (Autorenreferat, IAB-Doku, © Emerald Group)

Abstract

"The European Union is facing important challenges as it navigates a changing global economic and political landscape. In this context, this joint report by the SPC and the European Commission highlights the crucial need for a strong social Europe with reliable safety nets. By promoting active inclusion, our goal is to improve the lives of those who are furthest from the labour market, while also strengthening social cohesion within the EU. This report is an opportunity to take stock of our progress in delivering on the European Pillar of Social Rights (EPSR), especially principle 14 on adequate minimum income (MI), and to outline the way forward." (Author's abstract, IAB-Doku) ((en))

Zitatform

Adamopoulou, Effrosyni, Francesco Manaresi, Omar Rachedi & Emircan Yurdagul (2024): Minimum wages and insurance within the firm. (ZEW discussion paper 24-021), Mannheim, 66 S.

Abstract

"Minimum wages generate an asymmetric pass-through of firm shocks across workers. We establish this result leveraging employer-employee data on Italian metalmanufacturing firms, which face different wage floors that vary within occupations. In response to negative firm productivity shocks, workers close to the wage floors experience higher job separations but no wage loss. However, the wage of high-paid workers decreases, and more so in firms with higher incidence of minimum wages. A neoclassical model with complementarities across workers with different skills rationalizes these findings. Our results uncover a novel channel that tilts the welfare gains of minimum wages toward low-paid workers." (Author's abstract, IAB-Doku) ((en))

Zitatform

Ahn, Taehyun (2024): Minimum wage and self-employed business owners: Evidence from South Korea. In: Labour Economics, Jg. 88. DOI:10.1016/j.labeco.2024.102539

Abstract

"This study examines the influences of minimum wage on self-employment exits, using recent changes in the minimum wage level in South Korea. Using the cross-industry variation on the impact of the minimum wage—the proportion of workers whose wages are below the minimum wage in the upcoming year—combined with individual longitudinal data, I estimate the model of self-employment exits. Overall, the estimates show that the minimum wage hike has no significant impact on self-employed workers. However, it increases the likelihood of the business closing for the self-employed who hire employees. The results imply that a ten percent increase in the minimum wage raises the exit probability by 2.6 percentage points, which is 30.9 % of the average exit rate for those with employees. Moreover, the exits are significantly associated with the transition to non-employment." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((en))

Zitatform

Alessandrini, Diana & Joniada Milla (2024): Minimum Wage Effects on Human Capital Accumulation: Evidence from Canadian Data. In: Journal of Human Capital, Jg. 18, H. 2, S. 346-376. DOI:10.1086/728084

Abstract

"We investigate the impact of the minimum wage on individuals’ post-secondary schooling decisions. Using Canadian longitudinal data, we explore 136 minimum wage amendments and find three novel results. First, the minimum wage affects both thequantity and type of human capital acquired by students. A 10% increase in the minimum wage increases community-college enrollment by 6.2% but reduces University enrollment by 6.5%. Second, high minimum wages widen the university participation gap between individuals with different levels of parental education. Finally, Minimum wage hikes encourage workers who recently separated from their job to return to post-secondary education as mature students" (Author's abstract, IAB-Doku) ((en))

Zitatform

Arnadillo, Juan J., Amadeo Fuenmayor & Rafael Granell (2024): The relationship between minimum wage and employment. A synthetic control method approach. In: The Economic and Labour Relations Review, Jg. 35, H. 3, S. 771-791. DOI:10.1017/elr.2024.44

Abstract

"Spain increased its minimum wage (MW) by 22% in 2019. Given the intense debate in the economic literature on the impact of MW increases on the labour market, we conduct an impact assessment of this policy. The synthetic control method will be used to replicate the Spanish labour market by means of a pool of European countries that, in the absence of other reliable measures, simulates the evolution of Spanish employment. This will allow us to identify the causal effect from the increase in the MW. After applying the technique, the increase in the MW is found to have no effect on employment. The results have been subjected to robustness tests such as leave one out or segmentation by gender or age." (Author's abstract, IAB-Doku) ((en))

Zitatform

Bezooijen, Emiel van, Wiljan van den Berge & Anna Salomons (2024): The Young Bunch: Youth Minimum Wages and Labor Market Outcomes. In: ILR review, Jg. 77, H. 3, S. 428-460. DOI:10.1177/00197939241239317

Abstract

"The authors estimate the effects of an increase in the youth minimum wage in the Netherlands on low-paid workers’ employment and earnings, using a difference-in-differences approach with detailed administrative data. Findings show that the increase does not have a negative effect on the number of jobs or hours worked, hence raising overall earnings for affected workers. Further, the minimum wage increase has substantial spillover effects, accounting for close to 70% of the average wage increase experienced by workers. While employment grows in fixed-term and temporary help agency contracts, the authors do not find evidence of declines in employment in other types of work arrangements, nor of labor-labor substitution. Labor market outcomes evolve most favorably for full-time incumbent workers who are not enrolled in education and are thus less likely to be transient occupants of minimum wage jobs." (Author's abstract, IAB-Doku) ((en))

Zitatform

Devereux, Kevin & Zuzanna Studnicka (2024): Non-monotonic employment effects by market structure and minimum wage level. (CLEF working paper series / Canadian Labour Economics Forum 66), Waterloo, ON, 62 S.

Abstract

"Minimum wages decrease employment in competitive markets, but can increase it in monopsonistic markets so long as they do not exceed the marginal product of labor. We find evidence of non-monotonicity both by market structure and minimum wage level. Minimum wage hikes initially increase hours worked for minimum wage workers (MWWs) in high-concentration local labor markets (LLMs), while increasing job loss likelihood for MWWs in low-concentration LLMs. Repeated hikes reverse initial hours gains, and may increase job loss. Non-MWWs show economically negligible responses throughout. Observing minimum wage status allows for both within- and across-market difference-in-difference designs, whose findings provide mutual support. We combine these into a triple-difference specification. Our results help to resolve the lack of consensus around the sign of the minimum wage's employment effects." (Author's abstract, IAB-Doku) ((en))

Zitatform

Dingeldey, Irene & Ilana Nussbaum Bitran (2024): The European Minimum Wage Directive – and why it is a challenge to trade unions' but not employers' unity. In: Economic and Industrial Democracy, Jg. 45, H. 2, S. 489-510. DOI:10.1177/0143831X231161840

Abstract

"The proposal of a European minimum wage directive by the European Commission was supposed to improve working conditions. This article asks why such an initiative created a challenge to the unity of unions, but not of employers’ associations at transnational level. The authors provide a network analysis of the communication structure of social partners. Applying Scharpf’s concepts of positive and negative integration and Hirschman’s typology of exit, voice and loyalty, the authors use qualitative methods to show how employers stayed loyal and united towards negative integration, while different voices arose within the European Trade Union Confederation (ETUC) leading to the temporary ‘exit’ of the Swedish Trade Union Confederation." (Author's abstract, IAB-Doku) ((en))

Zitatform

Dosi, Giovanni & Maria Enrica Virgillito (2024): Minimum Wage for Italy: From Social Justice to Productive Efficiency. In: Intereconomics, Jg. 59, H. 4, S. 231-235. DOI:10.2478/ie-2024-0046

Abstract

"This article discusses the case of the minimum wage for Italy as a policy instrument to foster both social justice and productive efficiency. After briefly reviewing the empirical evidence on the effects of minimum wages upon employment, wage distribution and firmlevel reallocation, it presents a series of channels, from the micro to the macro level that can represent transmission mechanisms able to trigger positive feedback loops in the macroeconomic system." (Text excerpt, IAB-Doku) ((en))

Zitatform

Dube, Arindrajit & Ben Zipperer (2024): Own-Wage Elasticity: Quantifying the Impact of Minimum Wages on Employment. (NBER working paper / National Bureau of Economic Research 32925), Cambridge, Mass, 61 S.

Abstract

"The own-wage elasticity (OWE) of employment estimated using minimum wage increases provides an economically meaningful measure of the policy on jobs. We discuss how to interpret the magnitude of the OWE, including in terms of welfare and under alternative models of the labor market. We present a comprehensive set of OWE estimates from 88 studies and introduce an regularly updated repository of the estimates---https://economic.github.io/owe---an up-to-date snapshot of the existing literature for scholars and policymakers. We find that most studies to date suggest a fairly modest impact of minimum wages on jobs: the median OWE estimate of 72 studies published in academic journals is -0.13, which suggests that only around 13 percent of the potential earnings gains from minimum wage increases are offset due to associated job losses. Estimates published since 2010 tend to be closer to zero." (Author's abstract, IAB-Doku) ((en))

Zitatform

Egger, Hartmut, Udo Kreickemeier & Jens Wrona (2024): Monopsony Power, Offshoring, and a European Minimum Wage. (CESifo working paper 10920), München, 24 S.

Abstract

"This paper sets up a two-country model of offshoring with monopolistically competitive product and monopsonistically competitive labor markets. In our model, an incentive for offshoring exists even between symmetric countries, because shifting part of the production abroad reduces local labor demand and allows firms to more strongly execute their monopsonistic labor market power. However, offshoring between symmetric countries has negative welfare effects and therefore calls for policy intervention. In this context, we put forward the role of a common minimum wage and show that the introduction of a moderate minimum wage increases offshoring and reduces welfare. In contrast, a sizable minimum wage reduces offshoring and increases welfare. Beyond that, we also show that a sufficiently high common minimum wage cannot only eliminate offshoring but also inefficiencies in the resource allocation due to monopsonistic labor market distortions in closed economies." (Author's abstract, IAB-Doku) ((en))

Zitatform

Firpo, Sergio & Alysson Portella Lorenzon (2024): The labor market in Brazil, 2001–2022. (IZA world of labor 441), Bonn, 10 S. DOI:10.15185/izawol.441.v2

Abstract

"In the first decade of the 21st century, the Brazilian economy experienced an important expansion followed by a significant decline in inequality. The minimum wage increased rapidly, reducing inequality with no negative effects on employment or formality. This resulted from economic growth and greater supply of skilled labor. However, from 2014-2021, real wages were stagnant, and unemployment rates surged. Inequality rose again, although only marginally. Some positive signs emerged in 2022, although it is still too early to know whether they mark a return to past trends or a recovery from the pandemic." (Author's abstract, IAB-Doku) ((en))

Zitatform

Fossati, Sebastian & Joseph Marchand (2024): First to $15: Alberta's Minimum Wage Policy on Employment by Wages, Ages, and Places. In: ILR review, Jg. 77, H. 1, S. 119-142. DOI:10.1177/00197939231213064

Abstract

"Most minimum wage studies are identified on small, plentiful, mostly expected wage changes, spread out over time. A recent set of changes have instead been large, rapid, and unexpected, following the “Fight for $15” movement. Alberta is the first North American province, state, or territory to have this $15 minimum wage, with an unexpectedly large increase (47%) occurring over a short time horizon (3 years). The employment effects of this policy are estimated using a synthetic control approach on Labour Force Survey data. Similar to the existing literature, workers moved up the wage distribution, increment by increment, but with a higher distributional reach. Employment losses occurred at similar elasticities, but with large level changes, mostly among younger workers. Newer to the literature, regional employment losses were found in four of the five non-urban economic regions, but not in Alberta’s two main cities, showing the significance and nuance of regional heterogeneity." (Author's abstract, IAB-Doku) ((en))

Zitatform

Maccarrone, Vincenzo (2024): The Europeanization of Wage Policy and Its Consequences for Labor Politics: The Case of Ireland. In: ILR review, Jg. 77, H. 5, S. 716-741. DOI:10.1177/00197939241268065

Abstract

"This article investigates the transnational labor politics associated with the Europeanization of wage policy, based on process tracing of Irish minimum wage regulation reforms over the past two decades. The policy struggle in Ireland started as an employer-led domestic challenge to market-embedding regulation and was then affected by two EU interventions on wage policy: one with a de-regulatory orientation (during EU-IMF conditionality) and one with a re-regulatory one (with the approval of the EU minimum wage directive). Findings show that differences in collective action undertaken by employers and trade unions to influence wage policy at the national level can be explained by the intersection of each actor’s preferences toward market-constraining or liberalizing labor regulation and their access to supranational (EU-level) institutions and support. This analysis contributes to debates on how transnational opportunity structures can alter labor’s and employers’ local power resources and strategies." (Author's abstract, IAB-Doku) ((en))

Zitatform

Pan, Rui & Dao-Zhi Zeng (2024): Goods market desirability of minimum wages. In: Economica, Jg. 91, H. 364, S. 1255-1290. DOI:10.1111/ecca.12544

Abstract

"This paper presents a general equilibrium model incorporating heterogeneous firms and a perfectly competitive labor market to explore the desirability of minimum wages. We demonstrate that a low minimum wage could enhance social welfare, assuming equal weighting for all individuals. This occurs because the introduction of minimum wages has the potential to mitigate the goods market distortions arising from imperfect competition, firm heterogeneity and free entry. Additionally, we illustrate that the optimal minimum wage is positively associated with the preference intensity for differentiated products relative to the numeraire and population size, while it negatively correlates with the degree of love for variety, entry cost, and upper bound of marginal labor requirements." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

Zitatform

Paz Báñez, Manuela A. de, Celia Sánchez-López & María José Asensio-Coto (2024): Effects of the Minimum Wage (MW) on Income Inequality: Systematic Review and Analysis of the Spanish Case. In: Economies, Jg. 12, H. 9. DOI:10.3390/economies12090223

Abstract

"The minimum wage has become a standard measure in the economic and social policies of countries all over the world. The primary objective of this measure is to guarantee that workers receive a minimum wage that allows them to lead a decent life, thereby reducing inequality and poverty. However, studies on the minimum wage have not focused on assessing the effects on these dimensions but only on employment. The objective of this study is to address this research gap by analysing the effects of minimum wage increases on income inequality and poverty. To this end, firstly, a systematic review of the empirical analyses was conducted using the PRISMA methodology, with a view to ensuring that all empirical evidence was available. Secondly, the Spanish case was examined. The significant increase in minimum wage in Spain in 2019 (21.3% in real terms) presents an invaluable opportunity to utilise this event as a natural experiment to generate new evidence. A difference-in-differences approach was employed to assess the impact of this phenomenon in the period 2018-2019 with microdata from European Statistics on Income and Living Conditions (EU-SILC for Spain). In doing so, two basic scientific contributions were made. The first one, a systematic, exhaustive, and up-to-date literature review (up to June 2024), as there is, to our knowledge, no recent systematic review of this relationship (minimum wage vs. inequality). The available evidence indicates a clear inverse relationship between the minimum wage and inequalities and poverty. The second one, regarding the Spanish case, there has been a dearth of scientific studies on this subject. Thus, this paper provides new scientific evidence demonstrating that a significant increase in the minimum wage can significantly improve the income of low-wage earners, thereby reducing income inequality and in-work poverty. Furthermore, there is evidence of a spillover effect towards income groups closer to the treatment group." (Author's abstract, IAB-Doku) ((en))

Zitatform

Rossi, Remo, Malgorzata Graczyk, Lenka Viskotová & David Hampel (2024): The impact of minimum wage on automotive companies' performance. In: Journal of Eastern European and Central Asian Research, Jg. 11, H. 5, S. 931-944. DOI:10.15549/jeecar.v11i5.1736

Abstract

"This paper aims to verify the relationship between minimum wage growth and the financial indicators of automotive companies. As a hi-tech sector, the automotive industry is usually not expected to be affected by minimum wage policies. The introduction of the minimum wage in Germany and the dynamic development of the minimum wage in Eastern European countries make it possible to assess this relationship. German, Czech, Polish, and Slovak automotive company data was obtained from the Orbis database. Panel regression models were applied to test for dependencies. The paper detects the association between the growth of the minimum wage and the increase in personnel cost, which is next to the associations with several financial indicators at the company level. The identified impact is specific to small and medium-sized companies." (Author's abstract, IAB-Doku) ((en))

Zitatform

Titelbach, Gerlinde, Martin Ertl & Susanne Forstner (2024): Effekte einer allgemeinen Lohnuntergrenze für Österreich. In: Wirtschaft und Gesellschaft, Jg. 50, H. 2, S. 19-43. DOI:10.59288/wug502.232

Abstract

"In diesem Artikel untersuchen wir die potenziellen Auswirkungen der Einführung einer allgemeinen Lohnuntergrenze in Österreich. Im Jahr 2021 hätten rund 16 % der Beschäftigten von der Einführung einer Lohnuntergrenze in Höhe von monatlich brutto 2.000 Euro (14-mal pro Jahr) profitiert. Fast die Hälfte der Betroffenen war in Dienstleistungsbranchen (Einzelhandel, freiberufliche Dienstleistungen, Tourismus) beschäftigt, und überdurchschnittlich oft betroffen waren jüngere Beschäftigte, Arbeiter:innen, Beschäftigte mit maximal Pflichtschulabschluss oder mit ausländischer Staatsbürgerschaft. Die Verteilungswirkungen auf die verfügbaren Netto-Haushaltseinkommen werden mithilfe eines Steuertransfer-Mikrosimulationsmodells simuliert. Vor allem Haushalte am unteren Rand der Einkommensverteilung würden profitieren, die Effekte auf die gesamte Einkommensverteilung sind jedoch zu vernachlässigen. Simulationen der Einführung der Lohnuntergrenze in einem makroökonomischen Modell der österreichischen Volkswirtschaft ergeben insgesamt nur moderate Effekte auf gesamtwirtschaftliche Aggregate." (Autorenreferat, IAB-Doku)

Zitatform

Babet, Damien, Olivier Godechot & Marco G. Palladino (2023): In the Land of AKM: Explaining the Dynamics of Wage Inequality in France. (INSEE documents de travail / Institut National de la Statistique et des Etudes Economiques 2023-20), Paris, 63 S.

Abstract

"We use a newly built and quasi-exhaustive matched employer-employee database to study firms contribution towage inequalities in France. We employ the Abowd, Kramarz, and Margolis (1999) model (hereafter AKM) to decompose log-wage variance into between- and within-firm components. Our analysis covering the period from 2002 to 2019 reveals a significant increase in between-firm inequalities, driven by a growing tendency of high-wage workers to cluster together in high premium firms. These phenomena are directly associated with changes in firms demographics and workforce composition. Over the same period, bottom earnings percentiles increased more than the rest of the distribution, in line with the rise in the legal minimum wage. As a result, within-firm inequalities decreased, almost offsetting the rising between-firm inequalities." (Author's abstract, IAB-Doku) ((en))

Zitatform

Brochu, Pierre, David A. Green, Thomas Lemieux & James Townsend (2023): The Minimum Wage, Turnover, and the Shape of the Wage Distribution. (IZA discussion paper / Forschungsinstitut zur Zukunft der Arbeit 16514), Bonn, 62 S.

Abstract

"This paper proposes an empirical approach to decompose the distributional effects of minimum wages into effects for workers moving out of employment, workers moving into employment, and workers continuing in employment. We estimate the effects of the minimum wage on the hazard rate for wages, which provides a convenient way of re-scaling the wage distribution to control for possible employment effects. We find that minimum wage increases do not result in an abnormal concentration of Job Leavers below the new minimum wage, which is inconsistent with employment effects predicted by a neoclassical model. We also find that, for Job Stayers, the spike and spillover effects of the minimum wage are simply shifted right to the new minimum wage. Our findings are consistent with a model where entry wages are set according to a job ladder, and where firms preserve their internal wage structure due to fairness or internal incentives issues." (Author's abstract, IAB-Doku) ((en))

Zitatform

Brochu, Pierre, David A. Green, James Townsend & Thomas Lemieux (2023): The minimum wages, turnover, and the shape of the wage distribution. (IFS working paper / Institute for Fiscal Studies 2023,32), London, 62 S.

Abstract

"This paper proposes an empirical approach to decompose the distributional effects of minimum wages into effects for workers moving out of employment, workers moving into employment, and workers continuing in employment. We estimate the effects of the minimum wage on the hazard rate for wages, which provides a convenient way of re-scaling the wage distribution to control for possible employment effects. We find that minimum wage increases do not result in an abnormal concentration of Job Leavers below the new minimum wage, which is inconsistent with employment effects predicted by a neoclassical model. We also find that, for Job Stayers, the spike and spillover effects of the minimum wage are simply shifted right to the new minimum wage. Our findings are consistent with a model where entry wages are set according to a job ladder, and where firms preserve their internal wage structure due to fairness or internal incentives issues." (Author's abstract, IAB-Doku) ((en))

Zitatform

Jiménez, Bruno (2023): The Political economy of the minimum wage. In: Labour Economics, Jg. 85. DOI:10.1016/j.labeco.2023.102463

Abstract

"I evaluate the effects of the 2016 minimum wage hike in Peru on the approval of government performance. My identification strategy exploits the regional heterogeneity in the share of workers directly affected by the increase to implement a series of difference-in-differences specifications. For every percentage point increase in the share of treated workers, the approval of the central government (i.e., the president) also increases by a percentage point. I find a partial spillover effect to other levels of government. These results are robust to a number of alternative specifications and falsification tests, and cannot be explained by the results of the 2016 presidential elections. My findings suggest that improvements in subjective living conditions and non-negative effects on observed labor market performance are the main mechanisms behind these causal effects." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((en))

Zitatform

Oliveira, Carlos (2023): The minimum wage and the wage distribution in Portugal. In: Labour Economics, Jg. 85. DOI:10.1016/j.labeco.2023.102459

Abstract

"Raising the minimum wage can reshape the wage distribution. Using a semiparametric approach, counterfactual decomposition methods, and an extremely rich administrative dataset of all employees in Portugal, this paper presents significant visual and quantitative evidence of how changes in the minimum wage shaped the country’s wage distribution over the last thirty years. For most of this period, the importance of the minimum wage was decreasing. However, a sustained rise since 2006 coincided with a decline in wage inequality that was comparable to the United States’ total increase in inequality over the last five decades. This remarkable compression of the wage distribution can be fully accounted for by the rising minimum wage. While a minority of workers were directly covered by the minimum wage, spillover effects were observed up to the 54th percentile of the wage distribution, explaining more than half of its inequality-reducing effect. Portugal experienced modest wage growth between 2006 and 2019 but 38% of it can be associated to the increasing minimum wage." (Author's abstract, IAB-Doku, © 2024 Elsevier) ((en))

Zitatform

Schmillen, Achim, Michael Stops & Dewen Wang (2023): The Determinants of China's Minimum Wage Rates. In: China & World Economy, Jg. 31, H. 3, S. 59-91., 2023-02-12. DOI:10.1111/cwe.12489

Abstract

"We use a highly disaggregated panel of macro data and minimum wages at the county level to investigate the processes behind minimum wage adjustments in China. Relying on random effects models, spatial econometrics techniques, and multilevel analyses, we document that a comparatively small number of economic variables – including the local price level and GDP per capita – are important determinants of minimum wage rates. Interactions between adjacent counties and counties of the same administrative type, and centralized mechanisms, particularly at the provincial level, also play an important role in explaining the variance in minimum wage rates across counties. Finally, we show that China's provinces are the key players for setting minimum wage rates and that, when they do so, they are not uniform in the way they weigh different economic variables." (Author's abstract, IAB-Doku, © Wiley) ((en))

Zitatform

Žarković, Jelena, Artan Mustafa & Mihail Arandarenko (2023): Minimum income in the Western Balkans: From socialism to the European Pillar of Social Rights. In: Social Policy and Administration, Jg. 57, H. 1, S. 1-15. DOI:10.1111/spol.12855

Abstract

"In this article, we examine the evolution of minimum income programmes in the Western Balkans (comprising Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia). During socialism, Yugoslavia developed a rudimentary minimum income protection programme, while Albania did not have one. As countries moved towards a market economy, socialism's legacy remained relevant, but especially since 2000, governments have taken more direct responsibility for the minimum income schemes—typically under the influence of the World Bank. The attention was paid to strict targeting accuracy rather than to adequacy or sufficient coverage of the lowest deciles. In essence, neither socialist nor neoliberal policymakers ever recognised anything but the poverty relief function of the minimum income. Both ideologies were hostile, or at best indifferent, to increasing the adequacy and generosity of minimum income programmes, perceiving them as impediments and distractions that slowed socialist and neoliberal transformations. Despite some reform initiatives supported by the World Bank and, more recently, the European Union, the generosity and adequacy of minimum income programmes remain low, and coverage keeps declining. There have been very few efforts to develop inclusion function of the minimum income, while the activation aspect has achieved very little, sometimes degrading into punitive programmes of unpaid community work. In this dismal picture, the European Pillar of Social Rights action framework could serve as a guide for a long overdue third phase in the Western Balkans' minimum income policy evolution." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

Zitatform

Adamopoulou, Effrosyni, Francesco Manaresi, Omar Rachedi & Emircan Yurdagul (2022): Minimum Wages and Insurance Within the Firm. (CRC TR 224 discussion paper series / EPoS Collaborative Research Center Transregio 224 326), Bonn, 46 S.

Abstract

"Minimum wages alter the allocation of firm-idiosyncratic risk across workers. To establish this result, we focus on Italy, and leverage employer-employee data matched to firm balance sheets and hand-collected wage floors. We find a relatively larger pass-through of firm-specific labor-demand shocks into wages for the workers whose earnings are far from the floors, but who are employed by establishments intensive in minimum-wage workers. We study the welfare implications of this fact using an incomplete-market model. The asymmetric pass-through uncovers a novel channel which tilts the benefits of removing minimum wages toward high-paid employees at the expense of low-wage workers." (Author's abstract, IAB-Doku) ((en))

Zitatform

Albinowski, Maciej & Piotr Lewandowski (2022): The heterogeneous regional effects of minimum wages in Poland. In: Economics of Transition and Institutional Change, Jg. 30, H. 2, S. 237-267. DOI:10.1111/ecot.12283

Abstract

"We evaluate the impact of large minimum wage hikes on employment and wage growth in Poland between 2004 and 2018. We estimate panel data models utilizing the considerable variation in wage levels, and in minimum wage bites, across 73 Polish NUTS 3 regions. We find that minimum wage hikes had a significant positive effect on wage growth and a significant negative effect on employment growth only in regions of Poland that were in the first tercile of the regional wage distribution in 2007. These effects were moderate in size, and appear to be more relevant for wages. Specifically, if the ratio of minimum wage to average wage had remained constant after 2007, by 2018, the average wages in these regions would have been 3.2% lower, while employment would have been 1.2% higher. In the remaining two-thirds of Polish regions, we find no significant effects of minimum wage hikes on average wages or on employment." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

Zitatform

Doris, Aedín, Donal O'Neill & Olive Sweetman (2022): The Introduction of a Living Wage in Ireland. (Working papers / Department of Economics, NUI Maynooth 316), Maynooth, 50 S.

Abstract

"In June 2022 the Irish government announced intentions to replace the existing national minimum wage with a new Living Wage (LW) set at 60% of median wages. In this paper we review the evidence on the impact of a LW on wages, employment, inequality and poverty, We then use data from the EU-SILC to examine the characteristics of workers likely to be affected by the new LW and empirically examining the potential impact of the proposed LW on wages inequality and poverty. When examining the impact on labour market outcomes we also compare the impact of the proposed LW with a number of alternative LWs. While the proposed policy will increase the wages of the most vulnerable workers, we show that the introduction of a national LW would have a relatively small effect on inequality, poverty and the gender wage gap. In keeping with previous work, this shows how policies aimed only at workers fall short of addressing concerns about poverty and inequality; addressing these issues requires more powerful public policies." (Author's abstract, IAB-Doku) ((en))