Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/196621
Authors: 
Laporsek, Suzana
Orazem, Peter F.
Vodopivec, Matija
Vodopivec, Milan
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers 12123
Abstract: 
This study examines long-term effects of a minimum wage increase using an innovative identification strategy based on categorising workers according to their predicted marginal revenue products. It finds that the increase had a large and persistent disemployment effects on low-paid workers and that it triggered substitution toward more productive workers. As a consequence, the sub-minimum workers as a group lost average earnings, hours and employment compared to other workers. The adverse employment effect occurred both through a higher probability of transition from employment to non-employment and through a decreased probability of transition from non-employment to employment.
Subjects: 
minimum wage
employment
unemployment
hours
earnings
Slovenia
JEL: 
J38
J31
Document Type: 
Working Paper

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