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Do Women Benefit from Minimum Wages?

Author

Listed:
  • Olena Chorna

    (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 26, 110 00, Prague, Czech Republic)

  • Lucas van der Velde

    (Warsaw School of Economics & FAME|GRAPE)

Abstract

We study how the large and unexpected increase in the minimum wage in Poland impacted the gender wage gap. For this purpose, we employ a distribution regression model coupled with a difference-in-differences estimator that recovers changes in the gender wage gap with minimum assumptions on the counterfactual wage distribution. We find that the increase in minimum wage closes the gender wage gap by almost 4 percentage points at the bottom of the wage distribution with a small spillover effect around the minimum wage. By contrast, at the top of the wage distribution gender inequality continued to grow. Minimum wage increases reduced gender wage gap even in a context of growing inequality.

Suggested Citation

  • Olena Chorna & Lucas van der Velde, 2020. "Do Women Benefit from Minimum Wages?," Working Papers IES 2020/36, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Sep 2020.
    • Handle: RePEc:fau:wpaper:wp2020_36
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    File URL: https://ies.fsv.cuni.cz/en/veda-vyzkum/working-papers/6292
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    More about this item

    Keywords

    Minimum wage; wage gap; distribution-regression; difference-in-difference;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • I2 - Health, Education, and Welfare - - Education
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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