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Impact Of Minimum Wage Setting On Companies In Portugal

Author

Listed:
  • Dominika ?ÁKOVSKÁ
  • David HAMPEL
  • Lenka VISKOTOVÁ

Abstract

This paper aims to verify the relationship between minimum wage growth and company financial indicators in Portugal, in the light of the Economic Adjustment Programme. The period analysed is from 2009 to 2019, the work focuses on companies from the Accommodation, Administrative, and Food sectors. Panel regression models are estimated to test for dependencies. Significant impacts are detected especially for the indicators of companies in the Food sector. The significant role of the Economic Adjustment Programme is verified here, after the implementation of which the effects of minimum wage growth have been in line with economic expectations.

Suggested Citation

  • Dominika ?ÁKOVSKÁ & David HAMPEL & Lenka VISKOTOVÁ, 2024. "Impact Of Minimum Wage Setting On Companies In Portugal," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 24(2), pages 53-70.
    • Handle: RePEc:eaa:eerese:v:24:y2024:i:2_4
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    File URL: http://www.usc.es/~economet/reviews/eers2424.pdf
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    More about this item

    Keywords

    company indicators; Economic Adjustment Programme; nominal minimum wage; performance by economic sector; Portugal;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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