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Minimum Wages in Austria: Estimation of Employment Functions

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  • Ragacs, Christian

Abstract

Minimum wages in Austria are bargaining results between labour unions and entrepreneurs. This paper analyses the empirical effects of minimum wages ("Kollektivvertragslöhne") on employment. "Employment functions", based on a "neo-classical" partial analytic framework, are estimated. The empirical analysis that is done for aggregated Austrian industry and specific branches at first sight seems to support the standard theoretical thesis. In addition, problems caused by the used method, which may occur in similar studies too, are shown. They give rise to the possibility that models of this kind are misspecified.

Suggested Citation

  • Ragacs, Christian, 1993. "Minimum Wages in Austria: Estimation of Employment Functions," Department of Economics Working Paper Series 20, WU Vienna University of Economics and Business.
    • Handle: RePEc:wiw:wus005:6295
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