IDEAS home Printed from https://ideas.repec.org/p/rjr/wpconf/151208.html

MINIMUM WAGE AND BUSINESS ENVIRONMENT IN ROMANIA: AN INSTITUTIONAL PERSPECTIVE (International Conference "Recent Advances in Economic and Social Research", 13-14 mai 2015, București)

Author

Listed:
  • Marius-Cristian Pana

    (Bucharest University of Economic Studies,)

Abstract

The institutional economics perspective is less present in the field of minimum wage law’s implications, despite the fact that labor market is one of the most regulated markets in every economy. At its beginnings, the minimum wage legislation has been subject of intense controversies between the institutionalist and neoclassical economists, but the mainstream point of view has gained ground. Still, in the last decade the institutional economics perspective has made some progress in this area, its contributions being limited to justifying the necessity of the minimum wage legislation based on some arguments borrowed from the old institutionalists, especially from John Commons. This paper is focused on the minimum wage law’s implications on the business environment in Romania. The institutional hypothesis that guides the entire reasoning in this paper is: any entrepreneurial endeavor means, basically, that the entrepreneurs act in an existing institutional frame. The formal regulations, such as minimum wage legislation, affect entrepreneurial behavior by creating and altering transaction costs. The aim of this paper is to offer an explanation to the evasive entrepreneurship in Romania using the concept of transaction costs related to the institutional rigidities created by the minimum wage legislation.

Suggested Citation

  • Marius-Cristian Pana, 2015. "MINIMUM WAGE AND BUSINESS ENVIRONMENT IN ROMANIA: AN INSTITUTIONAL PERSPECTIVE (International Conference "Recent Advances in Economic and Social Research", 13-14 mai 2015, București)," Institute for Economic Forecasting Conference Proceedings 151208, Institute for Economic Forecasting.
    • Handle: RePEc:rjr:wpconf:151208
    as

    Download full text from publisher

    File URL: https://www.ipe.ro/RePEc/WorkingPapers/wpconf151208.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bruce E. Kaufman, 2010. "Institutional Economics and the Minimum Wage: Broadening the Theoretical and Policy Debate," ILR Review, Cornell University, ILR School, vol. 63(3), pages 427-453, April.
    2. Bruce E. Kaufman, 2009. "Promoting Labour Market Efficiency and Fairness through a Legal Minimum Wage: The Webbs and the Social Cost of Labour," British Journal of Industrial Relations, London School of Economics, vol. 47(2), pages 306-326, June.
    3. Russell S. Sobel, 1999. "Theory and Evidence on the Political Economy of the Minimum Wage," Journal of Political Economy, University of Chicago Press, vol. 107(4), pages 761-785, August.
    4. Lütkepohl,Helmut & Krätzig,Markus (ed.), 2004. "Applied Time Series Econometrics," Cambridge Books, Cambridge University Press, number 9780521547871, January.
    5. Bruce Kaufman, 2008. "The Non-Existence of the Labor Demand/Supply Diagram, and other Theorems of Institutional Economics," Journal of Labor Research, Springer, vol. 29(3), pages 285-299, September.
    6. Lütkepohl,Helmut & Krätzig,Markus (ed.), 2004. "Applied Time Series Econometrics," Cambridge Books, Cambridge University Press, number 9780521839198, January.
    7. Cosmin ENACHE, 2012. "Unemployment Benefit, Minimum Wage And Average Salary Earnings In Romania," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 10, pages 85-96, December.
    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. Alina HAGIU & Marinela BARBULESCU, 2017. "Evolutions In The National And The European Union Business Environment In The Context Of Globalization," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 16(3), pages 181-193.

    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. Michal Franta, 2012. "Macroeconomic Effects of Fiscal Policy in the Czech Republic: Evidence Based on Various Identification Approaches in a VAR Framework," Working Papers 2012/13, Czech National Bank, Research and Statistics Department.
    2. Anton Velinov, 2014. "Assessing the Sustainability of Government Debt: On the Different States of the Debt/GDP Process," Discussion Papers of DIW Berlin 1359, DIW Berlin, German Institute for Economic Research.
    3. João Sousa Andrade, 2006. "Mobilidade do Capital e Sustentabilidade Externa: uma aplicação da tese de F-H a Portugal (1910-2004)," GEMF Working Papers 2006-04, GEMF, Faculty of Economics, University of Coimbra.
    4. Ihle, Rico & Brümmer, Bernhard & Thompson, Stanley R., 2010. "Structural change in European calf markets: Policy decoupling and movement restrictions," 114th Seminar, April 15-16, 2010, Berlin, Germany 61085, European Association of Agricultural Economists.
    5. Julien Malizard, 2014. "Dépenses militaires et croissance économique dans un contexte non linéaire. Le cas français," Revue économique, Presses de Sciences-Po, vol. 65(3), pages 601-618.
    6. Leonardo Quero-Virla, 2016. "Macroeconomic Effects of Oil Price Fluctuations in Colombia," Revista Ecos de Economía, Universidad EAFIT, vol. 20(43), pages 23-38.
    7. Bernstein, Ronald & Madlener, Reinhard, 2015. "Short- and long-run electricity demand elasticities at the subsectoral level: A cointegration analysis for German manufacturing industries," Energy Economics, Elsevier, vol. 48(C), pages 178-187.
    8. Bonga-Bonga, Lumengo & Kabundi, Alain, 2015. "Monetary Policy Instrument and Inflation in South Africa: Structural Vector Error Correction Model Approach," MPRA Paper 63731, University Library of Munich, Germany.
    9. Baris Teke, 2013. "Effects of a Change in the Composition of IMKB 30 on Stock Performance," Istanbul Stock Exchange Review, Research and Business Development Department, Borsa Istanbul, vol. 13(51), pages 21-57, April.
    10. Palić Irena & Hodžić Sabina & Dumičić Ksenija, 2019. "Personal Income Taxation Determinants in Federation of Bosnia and Herzegovina," Business Systems Research, Sciendo, vol. 10(1), pages 153-163, April.
    11. Michael Wegener & Göran Kauermann, 2017. "Forecasting in nonlinear univariate time series using penalized splines," Statistical Papers, Springer, vol. 58(3), pages 557-576, September.
    12. Qian, Chenqi & Zhang, Tianding & Li, Jie, 2023. "The impact of international commodity price shocks on macroeconomic fundamentals: Evidence from the US and China," Resources Policy, Elsevier, vol. 85(PB).
    13. Grau, Aaron Stephan Alexander & Hockmann, Heinrich, "undated". "Estimating oligopsony power on two vertically integrated markets," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261277, European Association of Agricultural Economists.
    14. Serrao, Amilcar, 2016. "A controversial debate between financial speculation and changes in agricultural commodity spot prices," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235638, Agricultural and Applied Economics Association.
    15. Ihle, R. & Brümmer, B. & Thompson, S.R., . "Auswirkungen der Fischler-Reform und der Blauzungenkrankheit auf die Europäischen Kälbermärkte," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 46.
    16. Pham The Anh, 2007. "Nominal Rigidities and The Real Effects of Monetary Policy in a Structural VAR Model," Working Papers 06, Development and Policies Research Center (DEPOCEN), Vietnam.
    17. Nady Rapelanoro, 2017. "Hoarding international reserves and global liquidity expansion, what are the links and do they matter?," Working Papers hal-04141660, HAL.
    18. Priscila Gomes De Castro & Elaine Aparecida Fernandes & Antônio Carvalho Campo, 2014. "Os Determinantes Do Investimento Direto Estrangeiro No Brasil E No México: Uma Análise Empírica," Anais do XLI Encontro Nacional de Economia [Proceedings of the 41st Brazilian Economics Meeting] 118, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    19. Adu, Raymond & Litsios, Ioannis & Baimbridge, Mark, 2019. "Real exchange rate and asymmetric shocks in the West African Monetary Zone (WAMZ)," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 59(C), pages 232-249.
    20. Helmut Lütkepohl, 2013. "Vector autoregressive models," Chapters, in: Nigar Hashimzade & Michael A. Thornton (ed.), Handbook of Research Methods and Applications in Empirical Macroeconomics, chapter 6, pages 139-164, Edward Elgar Publishing.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:rjr:wpconf:151208. 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: Corina Saman The email address of this maintainer does not seem to be valid anymore. Please ask Corina Saman to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/ipacaro.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.