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Effects of a General Minimum Wage in Austria

Author

Listed:
  • Stefan Ederer

    (WIFO)

  • Josef Baumgartner

    (WIFO)

  • Marian Fink

    (WIFO)

  • Serguei Kaniovski

    (WIFO)

  • Christine Mayrhuber

    (WIFO)

  • Silvia Rocha-Akis

    (WIFO)

Abstract

The study analyses the impact of the implementation of a general minimum wage in Austria of 1,500 € or 1,700 € per month. First, we calculate the effects on personal and household incomes and their distribution. Second, we simulate the macroeconomic impact. We find that implementation of a minimum wage affects a broad group of employees, in particular at the lower margin of the income distribution, and increases their income substantially. The number of households at risk of poverty decreases markedly. The macroeconomic effects on production and employment are, however, limited.

Suggested Citation

  • Stefan Ederer & Josef Baumgartner & Marian Fink & Serguei Kaniovski & Christine Mayrhuber & Silvia Rocha-Akis, 2017. "Effects of a General Minimum Wage in Austria," WIFO Studies, WIFO, number 60570, August.
  • Handle: RePEc:wfo:wstudy:60570
    as

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    File URL: https://www.wifo.ac.at/wwa/pubid/60570
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    References listed on IDEAS

    as
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    4. Bossler, Mario & Gerner, Hans-Dieter, 2016. "Employment effects of the new German minimum wage : evidence from establishment-level micro data," IAB Discussion Paper 201610, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Barry T. Hirsch & Bruce E. Kaufman & Tetyana Zelenska, 2015. "Minimum Wage Channels of Adjustment," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 54(2), pages 199-239, April.
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    11. Stephen Nickell & Glenda Quintini, 2002. "The Recent Performance of the UK Labour Market," Oxford Review of Economic Policy, Oxford University Press, vol. 18(2), pages 202-220, June.
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