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Lowering wage inequality with the minimum wage increase in Slovenia

Author

Listed:
  • Suzana LaporÅ¡ek
  • Milan Vodopivec
  • Matija Vodopivec

Abstract

The paper analyses the development of wage inequality in Slovenia after a 22.9% increase in the minimum wage in 2010. The analysis is based on individual-level data, covering all workers and firms in Slovenia over the 2005-2015 period. The descriptive findings show that with the minimum wage increase, wage inequality in Slovenia lowered. The effect was stronger for women, young and less-educated or low-occupations workers, which are characterised to be most affected by the minimum wage policy. Further, results also show that a decline in wage inequality was higher among workers employed in small and unincorporated firms and those working in market services.

Suggested Citation

  • Suzana LaporÅ¡ek & Milan Vodopivec & Matija Vodopivec, 2021. "Lowering wage inequality with the minimum wage increase in Slovenia," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 13(3), pages 306-321.
    • Handle: RePEc:ids:ijsuse:v:13:y:2021:i:3:p:306-321
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