The Economic and Social Impact of Minimum Wage

Dan Armeanu () and Carmen Pascal ()
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Carmen Pascal: The Bucharest University of Economic Studies

ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, 2017, vol. 51, issue 3, 57-72

Abstract: This paper analyzes a matter of concern and of real interest to economists, employers and the political class, on the impact of minimum wage on unemployment and employment rates. The economic theory shows a positive link between the minimum wage and unemployment. The literature, however, shows no sign of a clear result on this relationship. This work aims to study the relevance of this statement for the Romanian economy, using different econometric methods. The article contains multiple models and approachesto test the nature of these dependencies, such as: cluster analysis, conditional correlation, regression estimation, variance decomposition and testing Granger causality using autoregressive vectors.These are complementary and, in the end, help us reach an unanimous conclusion

Keywords: minimum wage; macroeconomic variables; cluster analysis; Granger causality; VAR; conditional correlations. (search for similar items in EconPapers)
JEL-codes: C58 E24 E44 J30 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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