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The impact of minimum wage on employment in Poland

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Author Info

  • Majchrowska, Aleksandra

    (University of Lodz and National Bank of Poland)

  • Zółkiewski, Zbigniew

    (National Bank of Poland)

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    Abstract

    The purpose of this paper is to verify the hypothesis that minimum wage might have negative impact on employment in Poland, at least for some workers groups and regions. After having reviewed theoretical literature on minimum wage and having discussed stylized facts on labour market in Poland, the authors define econometric model to check the impact of minimum wage on employment in Poland and then discuss the results. The main conclusions of the study may be summarized as follows: i) minimum wage has had an adverse impact on employment in 1999-2010; ii) the adverse effect of minimum wage on employment has been pronounced for the young workers during the period of substantial increase of the minimum wage (2005-2010), and iii) there is some evidence that a uniform national minimum wage may be particularly harmful to employment in poorest regions.

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    Bibliographic Info

    Article provided by Asociación Española de Ciencia Regional in its journal Investigaciones Regionales.

    Volume (Year): (2012)
    Issue (Month): 24 ()
    Pages: 211-239

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    Handle: RePEc:ris:invreg:0010

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    Related research

    Keywords: Minimum wage; employment;

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    1. William T. Dickens & Lorenz Goette & Erica L. Groshen & Steinar Holden & Julian Messina & Mark E. Schweitzer & Jarkko Turunen & Melanie E. Ward, 2007. "How wages change: micro evidence from the international wage flexibility project," Staff Reports 275, Federal Reserve Bank of New York.
    2. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-93, September.
    3. 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, 06.
    4. Jan Fidrmuc & Juan de Dios Tena, 2012. "National minimum wage and labour market outcomes of young workers," Statistics and Econometrics Working Papers ws121209, Universidad Carlos III, Departamento de Estadística y Econometría.
    5. Mark B. Stewart, 2004. "The employment effects of the national minimum wage," Economic Journal, Royal Economic Society, vol. 114(494), pages C110-C116, 03.
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