Is Employment Decreasing Due to Minimum Wage increase?

Sanja BlaŽević

Economic Research-Ekonomska Istraživanja, 2013, vol. 26, issue 1, 69-100

Abstract: The paper aims at modelling and quantifying the connection between minimum wage and the employment rate of workers distributed according to age in the Republic of Croatia, on the basis of data from the Labour Force Survey for the period from 2000 to 2010 and by using a panel method with fixed effects aiming at proving the assumed hypothesis on the negative effect of the minimum wage increase on the employment rate of vulnerable groups of workers. The research results indicate the existence of a relationship with positive direction but little practical significance considering the need for a felt increase of minimum wage.

Date: 2013
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DOI: 10.1080/1331677X.2013.11517591

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