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On the Peculiar Relevance of a Fundamental Dilemma of Minimum-Wage Regulation in Post-Socialism - Apropos of an International Investigation

Author

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  • Istvan Gabor R.

    () (Department of Human Resources, Faculty of Economics, Budapest Corvinus University)

Abstract

To the extent minimum-wage regulation is effective in fighting against excessive earnings handicaps of those at the bottom of earnings distribution, it may have the side-effect of worsening their employment prospects. A demand-and-supply interpretation of data on the relative employment rate and earnings position of the least educated in the EU27 suggests that the resulting dilemma might be particularly relevant for minimum-wage policies in post-socialist countries.

Suggested Citation

  • Istvan Gabor R., 2010. "On the Peculiar Relevance of a Fundamental Dilemma of Minimum-Wage Regulation in Post-Socialism - Apropos of an International Investigation," Budapest Working Papers on the Labour Market 1006, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  • Handle: RePEc:has:bworkp:1006
    as

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    File URL: http://www.econ.core.hu/file/download/bwp/bwp1006.pdf
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    References listed on IDEAS

    as
    1. Kertesi, Gábor, 2000. "Ingázás a falusi Magyarországon. Egy megoldatlan probléma
      [Commuting in rural Hungary. An unresolved problem]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 775-798.
    2. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    3. Kertesi Gabor & Kezdi Gabor, 2008. "Children of the Post-Communist Transition: Age at the Time of the Parents' Job Loss and Dropping Out of Secondary School," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-27, January.
    4. Niall O'Higgins & Andrey Ivanov, 2006. "Education and Employment Opportunities for the Roma," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 48(1), pages 6-19, March.
    5. Jan Svejnar, 2002. "Transition Economies: Performance and Challenges," Journal of Economic Perspectives, American Economic Association, pages 3-28.
    6. Susanne Milcher, 2006. "Poverty and the Determinants of Welfare for Roma and Other Vulnerable Groups in Southeastern Europe," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 48(1), pages 20-35, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    minimum wage; employment; earnings dispersion; demand and supply of labour; wage and employment discrimination;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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