IDEAS home Printed from https://ideas.repec.org/a/ibn/ijefaa/v17y2025i2p26.html
   My bibliography  Save this article

Minimum Wage and Effects on Unemployment: The Case of Spain and Its Implications on Simpson’s Paradox and Geographical Mobility

Author

Listed:
  • Jorge Monray
  • Juan Morillo

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.

Suggested Citation

  • Jorge Monray & Juan Morillo, 2025. "Minimum Wage and Effects on Unemployment: The Case of Spain and Its Implications on Simpson’s Paradox and Geographical Mobility," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 17(2), pages 1-26, February.
  • Handle: RePEc:ibn:ijefaa:v:17:y:2025:i:2:p:26
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/ijef/article/download/0/0/51129/55484
    Download Restriction: no

    File URL: https://ccsenet.org/journal/index.php/ijef/article/view/0/51129
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ijefaa:v:17:y:2025:i:2:p:26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.