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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.
    • Handle: RePEc:has:bworkp:1006
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    More about this item

    Keywords

    minimum wage; employment; earnings dispersion; demand and supply of labour; wage and employment discrimination;
    All these keywords.

    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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