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Do Women Benefit from Minimum Wages?

Olena Chorna and Lucas van der Velde
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Olena Chorna: Institute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 26, 110 00, Prague, Czech Republic

No 2020/36, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: We study how the large and unexpected increase in the minimum wage in Poland impacted the gender wage gap. For this purpose, we employ a distribution regression model coupled with a difference-in-differences estimator that recovers changes in the gender wage gap with minimum assumptions on the counterfactual wage distribution. We find that the increase in minimum wage closes the gender wage gap by almost 4 percentage points at the bottom of the wage distribution with a small spillover effect around the minimum wage. By contrast, at the top of the wage distribution gender inequality continued to grow. Minimum wage increases reduced gender wage gap even in a context of growing inequality.

Keywords: Minimum wage; wage gap; distribution-regression; difference-in-difference (search for similar items in EconPapers)
JEL-codes: C2 I2 J16 (search for similar items in EconPapers)
Pages: 23
Date: 2020-09, Revised 2020-09
New Economics Papers: this item is included in nep-gen, nep-lab and nep-ore
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Persistent link: https://EconPapers.repec.org/RePEc:fau:wpaper:wp2020_36

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