IDEAS home Printed from https://ideas.repec.org/a/bic/journl/v18y2018i1p51-67.html
   My bibliography  Save this article

Minimum wages and employment retention: A microeconometric study for Estonia

Author

Listed:
  • Simona Ferraro

    (Department of Economics and Finance, Tallinn University of Technology)

  • Birgit Hanilane

    (Ministry of Finance of the Republic of Estonia)

  • Karsten Staehr

    (Department of Economics and Finance, Tallinn University of Technology. Eesti Pank)

Abstract

This paper assesses the effect of increases in the Estonian minimum wage in 2013Ð2016 on the probability of workers at different wage levels retaining employment. The effect is identified by comparing the probability of workers remaining employed after increases in the minimum wage in 2013Ð2016 with the probability of workers at comparable wage levels remaining employed in the 2009Ð2011 when the minimum wage was left unchanged. Estimations on data from the Estonian Labour Force Survey show that the increases in the minimum wage in 2013Ð2016 had no or small and imprecisely estimated effects on employment retention for the directly affected workers and similarly for those indirectly affected. These results are robust to the choice of control variables, to refinements of the treatment group and to changes in the time sample.

Suggested Citation

  • Simona Ferraro & Birgit Hanilane & Karsten Staehr, 2018. "Minimum wages and employment retention: A microeconometric study for Estonia," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 18(1), pages 51-67.
    • Handle: RePEc:bic:journl:v:18:y:2018:i:1:p:51-67
    as

    Download full text from publisher

    File URL: https://www.tandfonline.com/doi/full/10.1080/1406099X.2018.1485422
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.
    2. Linas Tarasonis & Jose Garcia-Louzao, 2020. "A First Glance at the Minimum Wage Incidence in Lithuania using Social Security Data," Bank of Lithuania Discussion Paper Series 23, Bank of Lithuania.

    More about this item

    Keywords

    Minimum wage; employment retention; wage distribution;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

    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:bic:journl:v:18:y:2018:i:1:p:51-67. 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: Anna Zasova (email available below). General contact details of provider: https://edirc.repec.org/data/biceplv.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.