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The impact of the minimum wage on job separations and working hours among young people in Poland

Author

Listed:
  • Anna Baranowska-Rataj

    () (Institute of Statistics and Demography, Warsaw School of Economics)

  • Iga Magda

    () (Department of Economics, Warsaw School of Economics)

Abstract

The aim of this paper is to investigate the impact of the minimum wage on the risk of job separation and changes in working hours among young people in Poland. To this end, we use longitudinal data from the Labour Force Survey 2003-2011 and a difference-in-differences matching estimator based on the changes in the individual position in the wage distribution. Specifically, we test the impact of the minimum wage by distinguishing between individuals who experienced a transition to the below-the-minimum-wage regime. Our results indicate that when the minimum wage was increased, employment levels, but not the number of hours of worked, declined among young people. We also found that the number of hours worked actually increased among those young people who remained employed after the minimum wage was raised. However, these effects of a hike in the minimum wage were found to have differed across various groups of workers, with men, students, and individuals who were working under a fixed-term contract being most likely to have either lost a job or increased their working longer hours.

Suggested Citation

  • Anna Baranowska-Rataj & Iga Magda, 2015. "The impact of the minimum wage on job separations and working hours among young people in Poland," Working Papers 75, Institute of Statistics and Demography, Warsaw School of Economics.
  • Handle: RePEc:isd:wpaper:75
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. International Monetary Fund, 2016. "Cross-Country Report on Minimum Wages; Selected Issues," IMF Staff Country Reports 16/151, International Monetary Fund.
    2. Piotr Lewandowski & Agnieszka Kaminska, 2015. "The effects of minimum wage on a labour market with high temporary employment," IBS Working Papers 7/2015, Instytut Badan Strukturalnych.
    3. Goraus-Tanska, Karolina & Lewandowski, Piotr, 2016. "Minimum Wage Violation in Central and Eastern Europe," IZA Discussion Papers 10098, Institute for the Study of Labor (IZA).
    4. repec:iza:izawol:journl:y:2018:n:426 is not listed on IDEAS

    More about this item

    Keywords

    minimum wage; youth unemployment; difference-in-differences matching;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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