On the Peculiar Relevance of a Fundamental Dilemma of Minimum-Wage Regulation in Post-Socialism - Apropos of an International Investigation

Istvan Gabor R. ()
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Istvan Gabor R.: Department of Human Resources, Faculty of Economics, Budapest Corvinus University

No 1006, Budapest Working Papers on the Labour Market from Institute of Economics, Centre for Economic and Regional Studies

Abstract: To the extent minimum-wage regulation is effective in fighting against excessive earnings handicaps of those at the bottom of earnings distribution, it may have the side-effect of worsening their employment prospects. A demand-and-supply interpretation of data on the relative employment rate and earnings position of the least educated in the EU27 suggests that the resulting dilemma might be particularly relevant for minimum-wage policies in post-socialist countries.

Keywords: minimum wage; employment; earnings dispersion; demand and supply of labour; wage and employment discrimination (search for similar items in EconPapers)
JEL-codes: J21 J23 J31 J38 J71 (search for similar items in EconPapers)
Date: 2010-11
New Economics Papers: this item is included in nep-lab
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