Minimum wages in a dual labour market: Evidence from the 2019 minimum-wage hike in Spain

Alexander Hijzen, Juan Mateo Montenegro Zarama and Ana Sofia Pessoa

No 298, OECD Social, Employment and Migration Working Papers from OECD Publishing

Abstract: This paper provides an assessment of the 2019 minimum-wage hike in Spain, which increased the minimum wage by 22% and directly concerned 7% of dependent employees. The assessment is based on an individual-level analysis that follows the outcomes of workers that were employed in the year before the reform over time. Among directly affected workers, the hike in the minimum wage increased full-time equivalent monthly earnings by on average 5.8% and reduced employment by -0.6%. The wage effects are stronger for workers on open-ended contracts, while the employment effects are stronger for workers on fixed-term contracts.

Keywords: employment protection; fixed-term contracts; labour market duality; wage-setting; wage-shifting (search for similar items in EconPapers)
JEL-codes: J3 J4 J8 (search for similar items in EconPapers)
Date: 2023-09-18
New Economics Papers: this item is included in nep-cta, nep-eec and nep-lma
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1787/7ff44848-en (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oec:elsaab:298-en

Access Statistics for this paper

More papers in OECD Social, Employment and Migration Working Papers from OECD Publishing Contact information at EDIRC.
Bibliographic data for series maintained by ().