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Minimum wage violation in central and eastern Europe

Author

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  • Karolina GORAUS‐TAŃSKA
  • Piotr LEWANDOWSKI

Abstract

This article analyses minimum wage violations over the period 2003–12 in ten central and eastern European countries which all have national statutory minimum wages. Using European Union Statistics on Income and Living Conditions (EU‐SILC) data and the methodology proposed by Bhorat, Kanbur and Mayet (2013), the authors measure the incidence and depth of violation. In addition, they conduct regression analyses on individual, workplace and macro‐level determinants of non‐compliance. While the incidence of violation remains relatively low, the workers that minimum wage policies seek to protect appear to be the most likely to be affected by non‐compliance. Over time, higher minimum to average wage ratios are related to a higher incidence of violation.

Suggested Citation

  • Karolina GORAUS‐TAŃSKA & Piotr LEWANDOWSKI, 2019. "Minimum wage violation in central and eastern Europe," International Labour Review, International Labour Organization, vol. 158(2), pages 297-336, June.
  • Handle: RePEc:bla:intlab:v:158:y:2019:i:2:p:297-336
    DOI: 10.1111/ilr.12086
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    File URL: https://doi.org/10.1111/ilr.12086
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Albinowski, Maciej & Lewandowski, Piotr, 2020. "The Heterogenous Regional Effects of Minimum Wages in Poland," IZA Discussion Papers 13412, Institute of Labor Economics (IZA).
    2. Marek Gora & Piotr Lewandowski & Maciej Lis, 2017. "Temporary employment boom in Poland – a job quality vs. quantity trade-off?," IBS Working Papers 04/2017, Instytut Badan Strukturalnych.
    3. Katalin Bodnár & Ludmila Fadejeva & Stefania Iordache & Liina Malk & Desislava Paskaleva & Jurga Pesliakaitė & Nataša Todorović Jemec & Peter Tóth & Robert Wyszyński, 2018. "How do firms adjust to rises in the minimum wage? Survey evidence from Central and Eastern Europe," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-30, December.
    4. Jeffrey Clemens, 2021. "How Do Firms Respond to Minimum Wage Increases? Understanding the Relevance of Non-employment Margins," Journal of Economic Perspectives, American Economic Association, vol. 35(1), pages 51-72, Winter.
    5. Ernest Dautovic & Harald Hau & Yi Huang, 2017. "The Consumption Response to Minimum Wages: Evidence from Chinese Households," IHEID Working Papers 01-2017, Economics Section, The Graduate Institute of International Studies.
    6. Piotr Lewandowski & Iga Magda, 2018. "The labor market in Poland, 2000−2016," IZA World of Labor, Institute of Labor Economics (IZA), pages 426-426, February.
    7. Clemens, Jeffrey & Strain, Michael R., 2019. "Understanding "Wage Theft": Evasion and Avoidance Responses to Minimum Wage Increases," IZA Discussion Papers 12167, Institute of Labor Economics (IZA).
    8. Andrea Garnero, 2018. "The dog that barks doesn’t bite: coverage and compliance of sectoral minimum wages in Italy," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-24, December.
    9. Koch, Andreas & Kirchmann, Andrea & Reiner, Marcel & Scheu, Tobias & Zühlke, Anne & Bonin, Holger, 2020. "Verhaltensmuster von Betrieben und Beschäftigten im Kontext des gesetzlichen Mindestlohns," IZA Research Reports 97, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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