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Minimum wages and provision of training

Author

Listed:
  • Zigova, Katarina
  • Zwick, Thomas

Abstract

We find a substantial and long-lasting positive effect of the introduction of regional minimum wages on training incidence and intensity. We apply a stacked difference-in-differences estimation to identify the dynamic effect of high minimum wages introduced in several Swiss cantons between 2018 and 2022. Employers invest more in formal training for retained employees during working hours, covering content beyond their main economic activity. We conclude that employers increase the productivity of their employees to retain the underlying rents. We carefully rule out confounding factors and offer an explanation for the difference between our and some earlier findings.

Suggested Citation

  • Zigova, Katarina & Zwick, Thomas, 2026. "Minimum wages and provision of training," ZEW Discussion Papers 26-003, ZEW - Leibniz Centre for European Economic Research.
  • Handle: RePEc:zbw:zewdip:336769
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    Keywords

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    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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