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Short-term and long-term employment effects of minimum wage: evidence from Poland

Author

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  • Albinowski, Maciej

    (Ministry of Finance)

Abstract

I use the Polish anonymized tax data for 24 million individuals observed in the period 2004-2016 to analyse the employment effects of minimum wage. In contrast to most studies, the longitudinal dimension of the dataset allows me to control for unobserved characteristics of employees and to assess the long-term effects of minimum wage hikes. I find that minimum wage has a moderate impact on job separations in the long-run, while the short-term effects are negligible. Another important result is that young workers earning around the level of minimum wage have a significantly lower probability of returning to employment after a job loss than their peers from higher part of the income distribution. This effect has been in place since 2008, when there was a substantial increase in the minimum wage.

Suggested Citation

  • Albinowski, Maciej, 2018. "Short-term and long-term employment effects of minimum wage: evidence from Poland," MF Working Papers 31, Ministry of Finance in Poland.
    • Handle: RePEc:ris:mfplwp:0031
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    File URL: https://www.gov.pl/documents/1079560/1080340/MF_WP_No_29-2018.pdf/c3f9634a-dafa-1dda-4805-4ac2f215dbd3
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    Citations

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    Cited by:

    1. Maciej Albinowski & Piotr Lewandowski, 2022. "The heterogeneous regional effects of minimum wages in Poland," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(2), pages 237-267, April.
    2. Aleksandra Majchrowska & Paweł Strawiński, 2024. "The evolution of the minimum wage in Poland and its consequences on labour market," Bank i Kredyt, Narodowy Bank Polski, vol. 55(1), pages 55-74.

    More about this item

    Keywords

    minimum wage; unemployment; social exclusion;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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