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Unemployment in the Context of Minimum Wage Concept in Slovakia

Author

Listed:
  • Andrea Tkacova

    (Technical University of Košice, Slovakia)

  • Beata Gavurova

    (Technical University of Košice, Slovakia)

  • Katarina Melasova

    (Technical University of Košice, Slovakia)

  • Peter Snopko

    (Technical University of Košice, Slovakia)

Abstract

The aim of study is to identify an impact of the minimum wage concept on the unemployment rate in Slovakia from 1993 to 2020. Linear regression tests an impact of the Kaitz index, minimum wage and living wage rate, GDP, unemployment rate of people with basic education and progressive taxation. In case the minimum wage increase is less profound than the average wage increase, and a difference between the minimum wage and the living wage is being continually deepened, then the unemployment rate may be decreased. The Slovak unemployment rate may decrease by the GDP growth and by decreasing the number of citizens with basic education.

Suggested Citation

  • Andrea Tkacova & Beata Gavurova & Katarina Melasova & Peter Snopko, 2022. "Unemployment in the Context of Minimum Wage Concept in Slovakia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 10(1), pages 395-407, September.
    • Handle: RePEc:ssi:jouesi:v:10:y:2022:i:1:p:395-407
    DOI: 10.9770/jesi.2022.10.1(21)
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    References listed on IDEAS

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    More about this item

    Keywords

    minimum wage; unemployment rate; Kaitz index; linear regression;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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