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Minimum wage and youth unemployment in local labor markets in Poland

Author

Listed:
  • Paulina Broniatowska

    (Warsaw School of Economics, National Bank of Poland)

  • Aleksandra Majchrowska

    (National Bank of Poland)

  • Zbigniew Żółkiewski

    (National Bank of Poland)

Abstract

The aim of the paper is to analyze the impact of minimum wage on youth unemployment (less than 25 years old) in local (NUTS4) labor markets in Poland. The results show that minimum wage in Poland significantly affects youth unemployment in local labor markets in Poland. The higher is the minimum to average wage ratio on local labor market, the higher is the share of youth unemployed in total unemployment. The fact that youths are the group which is disproportionally affected by minimum wage increases is confirmed by low and/or insignificant value of the parameter by minimum to average wage ratio for other, older groups of unemployed.

Suggested Citation

  • Paulina Broniatowska & Aleksandra Majchrowska & Zbigniew Żółkiewski, 2015. "Minimum wage and youth unemployment in local labor markets in Poland," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 39, pages 57-70.
    • Handle: RePEc:sgh:annals:i:39:y:2015:p:57-70
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    File URL: http://rocznikikae.sgh.waw.pl/p/roczniki_kae_z39_04.pdf
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    References listed on IDEAS

    as
    1. Larry D. Singell & James R. Terborg, 2007. "Employment Effects Of Two Northwest Minimum Wage Initiatives," Economic Inquiry, Western Economic Association International, vol. 45(1), pages 40-55, January.
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    Citations

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    Cited by:

    1. Błażej Łyszczarz, 2018. "Determinanty wydatków na zdrowie w gospodarstwach domowych w Polsce," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 137-157.
    2. Aleksandra Majchrowska & Pawe³ Strawiñski, 2019. "Minimum wage workers in the private sector in Poland: regional perspective," Lodz Economics Working Papers 2/2019, University of Lodz, Faculty of Economics and Sociology.
    3. Aleksandra Majchrowska & Paweł Strawiński, 2021. "Minimum wage and local employment: A spatial panel approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(5), pages 1581-1602, October.
    4. Aleksandra Majchrowska & Paweł Strawiński, 2024. "The evolution of the minimum wage in Poland and its consequences on labour market," Bank i Kredyt, Narodowy Bank Polski, vol. 55(1), pages 55-74.
    5. Abdullah Selim Öztek, 2021. "Minimum Wage Effects under Informality: Evidence from Turkey," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 35(2), pages 98-136.

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    More about this item

    Keywords

    minimum wage; youth unemployment; local labor markets in Poland;
    All these keywords.

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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