Fighting “Low Equilibria” by Doubling the Minimum Wage ? Hungary’s Experiment
Gábor Kertei () and
János Köll? ()
Authors registered in the RePEc Author Service: Janos Köllő () and
Gabor Kertesi ()
William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan
In January 2001 the Hungarian government increased the minimum wage from Ft 25,500 to Ft 40,000. One year later the wage floor rose further to Ft 50,000. The paper looks at the short-run impact of the first hike on small-firm employment and flows between employment and unemployment. It finds that the hike significantly increased labor costs and reduced employment in the small firm sector; and adversely affected the job retention and job finding probabilities of low-wage workers. While the conditions for a positive employment effect were mostly met in depressed regions spatial inequalities were amplified rather than reduced.
Keywords: Minimum wages; Regional labor markets; Transition; Hungary (search for similar items in EconPapers)
JEL-codes: J38 P23 R23 (search for similar items in EconPapers)
Pages: 43 pages
New Economics Papers: this item is included in nep-geo and nep-tra
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp644.pdf [302 Found]--> https://wdi.umich.edu/files/Publications/WorkingPapers/wp644.pdf)
Working Paper: Fighting “Low Equilibria” by Doubling the Minimum Wage? Hungary’s Experiment (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wdi:papers:2004-644
Access Statistics for this paper
More papers in William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan 724 E. University Ave, Wyly Hall 1st Flr, Ann Arbor MI 48109. Contact information at EDIRC.
Bibliographic data for series maintained by WDI ().