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Character And Intensity Of The Minimum Wage Influence On Unemployment In The Czech Republic And Slovakia

Author

Listed:
  • Bozena Kaderabkova

    () (Czech Technical University in Prague)

  • Emilie Jasova

    () (Business and Law School)

Abstract

This article analyses character of the relation between the minimum wage and unemployment in the Czech Republic and Slovakia. At the same time, it estimates the extent of the effect of the minimum wage on the examined unemployment indicators. The analysis in the Czech Republic indicated the increase in unemployment as a result of the increase in the minimum wage. In Slovakia both negative and positive effects were confirmed but a negative relationship prevailed. The intensity of the influence effects was moderately strong.

Suggested Citation

  • Bozena Kaderabkova & Emilie Jasova, 2016. "Character And Intensity Of The Minimum Wage Influence On Unemployment In The Czech Republic And Slovakia," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 5(1), pages 37-49, March.
  • Handle: RePEc:sek:jijoes:v:5:y:2016:i:1:p:37-49
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    References listed on IDEAS

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    1. Blanchard, Olivier & Wolfers, Justin, 2000. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," Economic Journal, Royal Economic Society, vol. 110(462), pages 1-33, March.
    2. Metcalf, David, 2007. "Why has the British national minimum wage had little or no impact on employment?," LSE Research Online Documents on Economics 19742, London School of Economics and Political Science, LSE Library.
    3. Butcher, Tim & Dickens, Richard & Manning, Alan, 2012. "Minimum wages and wage inequality: some theory and an application to the UK," LSE Research Online Documents on Economics 48937, London School of Economics and Political Science, LSE Library.
    4. Betcherman, Gordon & Luinstra, Amy & Ogawa, Makoto, 2001. "Labor market regulation : international experience in promoting employment and social protection," Social Protection and Labor Policy and Technical Notes 24078, The World Bank.
    5. Arindrajit Dube & T. William Lester & Michael Reich, 2010. "Minimum Wage Effects Across State Borders: Estimates Using Contiguous Counties," The Review of Economics and Statistics, MIT Press, pages 945-964.
    6. Sjef Ederveen & Laura Thissen, 2004. "Can Labour Market Institutions Explain Unemployment Rates in New EU Member States?," Economics Working Papers 027, European Network of Economic Policy Research Institutes.
    7. David Metcalf, 2007. "Why Has the British National Minimum Wage Had Little or No Impact on Employment?," CEP Discussion Papers dp0781, Centre for Economic Performance, LSE.
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    Citations

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    Cited by:

    1. Dominik Stroukal, 2016. "A longitudinal analysis of the effect of unemployment on health," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 5(2), pages 55-68, June.

    More about this item

    Keywords

    minimum wage; unemployment; unemployment rate; correlation coefficient;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications

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