Spillover effects of a minimum wage increase – evidence from Slovenia

Suzana Laporšek, Milan Vodopivec and Matija Vodopivec

Post-Communist Economies, 2019, vol. 31, issue 5, 603-622

Abstract: This article Analysis the effects of a large increase in Slovenia’s minimum wage in March 2010 on the wage distribution using an administrative matched employer–employee panel database. We find that the minimum wage hike increased the concentration of low-paid workers, creating a much more pronounced spike at the minimum, particularly in market services, and for the young, the least educated and those with the least work experience. Our analysis also shows that the March 2010 minimum wage increase also produced sizeable spillover effects. The spillover effects were higher among young and older workers, especially for wage levels near the new minimum wage. The results are based on a difference-in-differences approach comparing changes in wages during the control and treatment periods as experienced by workers in the wage group immediately above the level of the new minimum wage and workers in wage groups higher up in the wage distribution.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/14631377.2019.1578582 (text/html)
Access to full text is restricted to subscribers.

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:taf:pocoec:v:31:y:2019:i:5:p:603-622

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CPCE20

DOI: 10.1080/14631377.2019.1578582

Access Statistics for this article

Post-Communist Economies is currently edited by Roger Clarke

More articles in Post-Communist Economies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().