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The Effects of Minimum Wage Increases in the Czech Republic

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  • Jakub Grossmann

Abstract

This paper analyzes employment effects of four minimum wage increases implemented in the Czech Republic during 2012-2017, which cumulatively increased the national minimum wage by 37 percent. We analyze outcomes at the level of firm-occupation-county-specific job cells and apply an intensity-treatment estimator similar to that of Machin et al. (2003). Our preferred specifications suggest that minimum wage increases led to higher wages for low-paid workers and did not have significant impacts on their employment.

Suggested Citation

  • Jakub Grossmann, 2021. "The Effects of Minimum Wage Increases in the Czech Republic," CERGE-EI Working Papers wp679, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    • Handle: RePEc:cer:papers:wp679
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    File URL: http://www.cerge-ei.cz/pdf/wp/Wp679.pdf
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    References listed on IDEAS

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    1. Tor Eriksson & Mariola Pytlikova, 2004. "Firm‐level Consequences of Large Minimum‐wage Increases in the Czech and Slovak Republics," LABOUR, CEIS, vol. 18(1), pages 75-103, March.
    2. Mike Brewer & Thomas Crossley & Federico Zilio, 2019. "What do we really know about the employment effects of the UK’s National Minimum Wage?," IFS Working Papers W19/14, Institute for Fiscal Studies.
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    4. Machin, Stephen & Manning, Alan & Rahman, Lupin, 2002. "Where the minimum wage bites hard: the introduction of the UK national minimum wage to a low wage sector," LSE Research Online Documents on Economics 20070, London School of Economics and Political Science, LSE Library.
    5. David Card, 1992. "Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage," ILR Review, Cornell University, ILR School, vol. 46(1), pages 22-37, October.
    6. Doruk Cengiz & Arindrajit Dube & Attila Lindner & Ben Zipperer, 2018. "The effect of minimum wages on low-wage jobs: evidence from the United States using a bunching estimator," CEP Discussion Papers dp1531, Centre for Economic Performance, LSE.
    7. Doruk Cengiz & Arindrajit Dube & Attila Lindner & Ben Zipperer, 2019. "The Effect of Minimum Wages on Low-Wage Jobs," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(3), pages 1405-1454.
    8. Meyer, Robert H & Wise, David A, 1983. "The Effects of the Minimum Wage on the Employment and Earnings of Youth," Journal of Labor Economics, University of Chicago Press, vol. 1(1), pages 66-100, January.
    9. David Card, 1992. "Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage," Working Papers 680, Princeton University, Department of Economics, Industrial Relations Section..
    10. Stephen Machin & Alan Manning & Lupin Rahman, 2003. "Where the Minimum Wage Bites Hard: Introduction of Minimum Wages to a Low Wage Sector," Journal of the European Economic Association, MIT Press, vol. 1(1), pages 154-180, March.
    11. Hristos Doucouliagos & T. D. Stanley, 2009. "Publication Selection Bias in Minimum‐Wage Research? A Meta‐Regression Analysis," British Journal of Industrial Relations, London School of Economics, vol. 47(2), pages 406-428, June.
    12. repec:fth:prinin:300 is not listed on IDEAS
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    Cited by:

    1. Garcia-Louzao, Jose & Tarasonis, Linas, 2023. "Wage and Employment Impact of Minimum Wage: Evidence from Lithuania," Journal of Comparative Economics, Elsevier, vol. 51(2), pages 592-609.

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    More about this item

    Keywords

    minimum wage; intensity treatment; job cells; Czech Republic;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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