IDEAS home Printed from https://ideas.repec.org/p/bde/opaper/1902e.html
   My bibliography  Save this paper

An analysis of the impact of the rise in the national minimum wage in 2017 on the probability of job loss

Author

Listed:
  • Aitor Lacuesta

    (Banco de España)

  • Mario Izquierdo

    (Banco de España)

  • Sergio Puente

    (Banco de España)

Abstract

This article analyses the rise in the national minimum wage (NMW) in 2017 in Spain, drawing on information provided by the Social Security administrative labour records (MCVL). The results suggest this rise may have had an adverse effect on the probability of the group of workers with wages below the new minimum wage keeping their jobs. This effect would be of particular importance for older workers. The rise approved for the NMW in 2019 is far higher than those observed in the past, which considerably increases the number of workers affected and the uncertainty surrounding the adverse effects on the probability of them keeping their jobs. According to the estimates presented in this article, these negative effects could be significant.

Suggested Citation

  • Aitor Lacuesta & Mario Izquierdo & Sergio Puente, 2019. "An analysis of the impact of the rise in the national minimum wage in 2017 on the probability of job loss," Occasional Papers 1902, Banco de España.
  • Handle: RePEc:bde:opaper:1902e
    as

    Download full text from publisher

    File URL: https://www.bde.es/f/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/DocumentosOcasionales/19/Files/do1902e.pdf
    File Function: First version, February 2019
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Olympia Bover, 2011. "The Spanish survey of household finances (eff): description and methods of the 2008 wave," Occasional Papers 1103, Banco de España.
    2. Olympia Bover & Enrique Coronado & Pilar Velilla, 2014. "The Spanish survey of household finances (EFF): description and methods of the 2011 wave," Occasional Papers 1407, Banco de España.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Directorate General Economics, Statistics and Research, 2020. "The Spanish economy in 2019," Occasional Papers 2011, Banco de España.
    2. Dirección General de Economía y Estadística, 2020. "La economía española en 2019," Occasional Papers 2011, Banco de España.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David López-Rodríguez & Cristina García Ciria, 2020. "Spain’s tax structure in the context of the European Union," Occasional Papers 1810, Banco de España.
    2. Andrés Alonso & José Manuel Marqués, 2019. "Financial innovation for a sustainable economy," Occasional Papers 1916, Banco de España.
    3. Susana Párraga Rodríguez, 2019. "The effects of pension-related policies on household spending," Working Papers 1913, Banco de España.
    4. Eduardo Gutiérrez Chacón & César Martín Machuca, 2019. "Exporting Spanish firms. Stylized facts and trends," Occasional Papers 1903, Banco de España.
    5. Andrés Alonso & José Manuel Marqués, 2019. "Innovación financiera para una economía sostenible," Occasional Papers 1916, Banco de España.
    6. Ana de Almeida, 2019. "A tentative exploration of the effects of Brexit on foreign direct investment vis-à-vis the United Kingdom," Working Papers o201902, Banco de Portugal, Economics and Research Department.
    7. Sofie R. Waltl & Robin Chakraborty, 2022. "Missing the wealthy in the HFCS: micro problems with macro implications," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(1), pages 169-203, March.
    8. Beatriz Fernández-Olit & Juan Diego Paredes-Gázquez & Marta de la Cuesta-González, 2018. "Are Social and Financial Exclusion Two Sides of the Same Coin? An Analysis of the Financial Integration of Vulnerable People," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 135(1), pages 245-268, January.
    9. Enrique Moral-Benito, 2018. "The microeconomic origins of the Spanish boom," Occasional Papers 1805, Banco de España.
    10. Aller, Carlos & Grant, Charles, 2018. "The effect of the financial crisis on default by Spanish households," Journal of Financial Stability, Elsevier, vol. 36(C), pages 39-52.
    11. Chakraborty Robin & Kavonius Ilja Kristian & Pérez-Duarte Sébastien & Vermeulen Philip, 2019. "Is the Top Tail of the Wealth Distribution the Missing Link between the Household Finance and Consumption Survey and National Accounts?," Journal of Official Statistics, Sciendo, vol. 35(1), pages 31-65, March.
    12. Westermeier, Christian, 2016. "Estimating top wealth shares using survey data - An empiricist's guide," Discussion Papers 2016/21, Free University Berlin, School of Business & Economics.
    13. Carlos Conesa, 2019. "Bitcoin: A solution for payment systems or a solution in search of a problem?," Occasional Papers 1901, Banco de España.
    14. Pablo Hernández de Cos & Juan Francisco Jimeno & Roberto Ramos, 2017. "The Spanish public pension system: current situation, challenges and reform alternatives," Occasional Papers 1701, Banco de España.
    15. Pilar Cuadrado & Enrique Moral-Benito, 2016. "Potential growth of the spanish economy," Occasional Papers 1603, Banco de España.
    16. Alba Lugilde & Roberto Bande & Dolores Riveiro, 2018. "Precautionary saving in Spain during the great recession: evidence from a panel of uncertainty indicators," Review of Economics of the Household, Springer, vol. 16(4), pages 1151-1179, December.
    17. Eurosystem Household Finance and Consumption Network, 2013. "The Eurosystem Household Finance and Consumption Survey - Methodological report," Statistics Paper Series 1, European Central Bank.
    18. Henrique S. Basso & James Costain, 2016. "Macroprudential theory: advances and challenges," Occasional Papers 1604, Banco de España.
    19. Callado Muñoz, Francisco Jose & González Chapela, Jorge & Utrero González, Natalia, 2014. "Analysis of deviance in household financial portfolio choice: evidence from Spain," MPRA Paper 57497, University Library of Munich, Germany.
    20. Ana Arencibia Pareja & Samuel Hurtado & Mercedes de Luis López & Eva Ortega, 2017. "New version of the quarterly model of Banco de España (MTBE)," Occasional Papers 1709, Banco de España.

    More about this item

    Keywords

    minimum wage; employment; employment-to-unemployment flows;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bde:opaper:1902e. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ángel Rodríguez. Electronic Dissemination of Information Unit. Research Department. Banco de España (email available below). General contact details of provider: https://edirc.repec.org/data/bdegves.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.