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An age and gender analysis of the minimum wage impact upon the Romanian labour market

Author

Listed:
  • Larisa STANILA

    (National Scientific Research Institute for Labour and Social Protection, Bucharest, Romania)

  • Madalina Ecaterina POPESCU

    (National Scientific Research Institute for Labour and Social Protection, Bucharest, Romania)

  • Amalia CRISTESCU

    (National Scientific Research Institute for Labour and Social Protection, Bucharest, Romania)

Abstract

In this paper we examine the impact of minimum wages upon the labour market in Romania through econometric modelling using quarterly data for the period 2000-2013. Several age groups differentiated by gender were considered in the analysis in order to see if and how much does the minimum wage affect employment variation at different age and gender groups. Other explanatory variables were also considered in the analysis, such as: the average monthly gross earnings, the gross domestic product and the net investments expressed in comparable prices. The model used in our analysis is a linear one, used by other researchers as well, for which the international literature has either identified a negative impact of the minimum wage upon employment, or a statistically insignificant one. When the impact is negative, the most affected groups are generally young people and women, which is the reason why we decided to study the employment on different age and gender groups. Our results indicate a statistical significant impact, but of alternating signs depending on the age group. Based on these results we then made predictions based on various scenarios regarding the evolution of the independent variables.

Suggested Citation

  • Larisa STANILA & Madalina Ecaterina POPESCU & Amalia CRISTESCU, 2013. "An age and gender analysis of the minimum wage impact upon the Romanian labour market," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(Special I), pages 417-429, December.
    • Handle: RePEc:agr:journl:v:xx:y:2013:i:special-ii:p:417-429
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    Cited by:

    1. Eva Militaru & Madalina Ecaterina Popescu & Amalia Cristescu & Maria Denisa Vasilescu, 2019. "Assessing Minimum Wage Policy Implications upon Income Inequalities. The Case of Romania," Sustainability, MDPI, vol. 11(9), pages 1-20, May.

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