Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/326949 
Year of Publication: 
2024
Citation: 
[Journal:] SERIEs - Journal of the Spanish Economic Association [ISSN:] 1869-4195 [Volume:] 15 [Issue:] 1 [Year:] 2024 [Pages:] 1-55
Publisher: 
Springer, Heidelberg
Abstract: 
We examine the employment effects of the 2019 minimum wage increase in Spain on individual probabilities of losing employment status (extensive margin) and lowering work intensity (intensive margin). To do so, we use variation of workers' exposure to the reform by comparing monthly employment transitions into unemployment and reductions in number of working hours between employees earning less than the minimum wage (treatment group) and those earning more and that should therefore be unaffected by the reform (control group). We find that the new minimum wage significantly increased the probability of experiencing unemployment (1.7 percentage points) and a reduction in work intensity (0.9 percentage points) for treated workers after one year. Our results suggest substantial heterogeneity by age, prior work intensity, economic sector and geographical region of employees affected by the reform.
Subjects: 
Minimum wage
Employment effects
Matching
Work intensity
JEL: 
J23
J38
J68
J88
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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