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On the empirics of minimum wages and employment: evidence for the Austrian industry

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  • Christian Ragacs

Abstract

We investigate the empirical evidence of the 'textbook theory' of minimum wages for Austrian industry. In Austria, minimum wages are the result of wage bargaining which may be best described using a 'right to manage' model. In contrast to the predictions of the 'textbook analysis', no significant negative effects of minimum wages on employment have been found. This could be the result of the nature of the typical Austrian wage-bargaining situation.

Suggested Citation

  • Christian Ragacs, 2007. "On the empirics of minimum wages and employment: evidence for the Austrian industry," Applied Economics Letters, Taylor & Francis Journals, vol. 15(1), pages 61-64.
    • Handle: RePEc:taf:apeclt:v:15:y:2007:i:1:p:61-64
    DOI: 10.1080/13504850600689899
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    References listed on IDEAS

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    1. Jaehwan Park & Ronald Ratti, 1998. "Stationary data and the effect of the minimum wage on teenage employment," Applied Economics, Taylor & Francis Journals, vol. 30(4), pages 435-440.
    2. Duncan Watson, 2000. "UK wage underpayment: implications for the minimum wage," Applied Economics, Taylor & Francis Journals, vol. 32(4), pages 429-440.
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