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The Impact of Minimum Wage on the Evolution of Earnings in Romania

Author

Listed:
  • Mihaela-Eugenia VASILACHE

    (School of Advanced Studies of the Romanian Academy)

  • Georgiana PANAITE

    (Bucharest University of Economic Studies)

Abstract

Existence and nature of the relationship between the minimum gross guaranteed wage, average gross salary earning and economic growth are subjects which are reflected in the attention of economists for a long time, generating over time different theories and models. In the paper, we addressed the issue of the minimum wage from theoretical perspective and we analysed the causal linkages between the dynamics of the minimum gross guaranteed wage, the average gross salary earning and the economic growth. As a methodological approach, we used the multifactorial regression, the Toda-Yamamoto causality test, impulse analysis and variance decomposition in VAR models.

Suggested Citation

  • Mihaela-Eugenia VASILACHE & Georgiana PANAITE, 2016. "The Impact of Minimum Wage on the Evolution of Earnings in Romania," Eco-Economics Review, Ecological University of Bucharest, Economics Faculty and Ecology and Environmental Protection Faculty, vol. 2(1), pages 60-77, June.
    • Handle: RePEc:eub:ecoecr:v:2:y:2016:i:1:p:60-77
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    References listed on IDEAS

    as
    1. Meyer, Robert H & Wise, David A, 1983. "Discontinuous Distributions and Missing Persons: The Minimum Wage and Unemployed Youth," Econometrica, Econometric Society, vol. 51(6), pages 1677-1698, November.
    2. Jula, Dorin & Jula, Nicoleta, 2007. "Inter-industries productivity gap and the services employment dynamics," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 4(2), pages 5-15, June.
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    More about this item

    Keywords

    minimum gross guaranteed wage; average gross salary earning; Granger causality; VAR models;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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