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EN
The minimum wage in EU countries is applied either by law or through agreement between social partners. The aim of this paper is to create a typology of EU countries with respect to the amount of the statutory minimum wage and selected characteristics (economic level, educational level of the population and rate of unemployment). The analysis draws on official statistical data which have been processed using statistical methods. After the evaluation of the values of the calculated coefficients of correlation, only two characteristics were included in the cluster analysis (economic level and educational level). The reason for this, is that it was shown that the amount of the minimum wage and the rate of unemployment were independent variables. On the basis of the results of the cluster analysis, seven clusters were identified. From the description and analysis of the individual clusters it was not possible to draw any definitive conclusion on whether a particular level of minimum wage is bound to a certain educational level. Even the statement that higher statutory minimum wages are found in countries with higher economic level can only be made with considerable caution. It was also evident that “old” EU countries showed much greater homogeneity in these characteristics than was found in the “new”ones.
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Minimum Wage and its Functions in Poland

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EN
The article discusses the issues concerning the minimum wage. Remuneration is the inseparable element of work provided to the employer. Currently, numerous forms and types of it exist, among them the minimum wage which has been the subject of political and media discussions for many years. That subject attracts immense attention and on can find many different and contradictory opinions concerning it. The objective of this article is to draw attention to the issues of minimum wage in Poland analysing the results of own studies that were conducted in 2013. The questionnaire based survey covered 200 respondents, mainly employees, people searching for a job and employers. The questionnaire consisted of 21 questions with the legend (the last 5 questions concerning the sociodemographic situation of the respondents). The minimum wage in Poland is the subject of numerous arguments and disagreements among the employees, trade unions and the government; that is why the article presents not only the principles of minimum wage operation but also the consequences both positive and negative. It also presents the correlation between the costs of work and the minimum remuneration as well as its influence on employment moving from the discussion and analysis of own studies concerning the functioning of the minimum wage in Poland as seen by the unemployed, employees and employers. The vast majority of the respondents (79%) are for the minimum wage increase. And 69% of the respondents believe that the minimum remuneration has the largest influence on the employer.
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Minimum Wage Impact on the Polish Economy

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EN
This paper focuses on the analysis of the impact of the minimum wage on the Polish economy. It consists of three parts. The first part contains a short overview of the economic literature on the minimum wage in Poland and the results of research on this subject. The conclusions of these studies are unclear, which indicated the need to further analyze statistical data and assess the effects of raising the minimum wage in Poland. In the second part, an attempt is made to examine the correlation between the level of minimum wage and the rate of its change in Poland in the years 1992–2016 and basic economic indicators such as: level and rate of average wage growth, GDP, labor productivity, price growth dynamics and unemployment rate. Spearman’s correlation coefficients were used for this analysis. The third part concerns the perceived and potential effects of raising the minimum wage in 2017 to PLN 2,000 and introducing a minimum hourly rate of PLN 13. The focus is mainly on analyzing and assessing the impact of these decisions on the labor market in Poland. The positive aspects are presented as well as the dangers of introducing a minimum hourly wage. The article concludes that both the statistical data covering the last 25 years and the labor market analysis in 2017 do not support the negative effects of the minimum wage for the Polish economy.
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The introduction of the national minimum wage in Germany in 2015 is an important yet controversial instrument of labour market policy. This paper represents an attempt to define the scope of influence it has on companies and employees in respective branches of economy (accommodation and food services business, retail trade, manufacture of food products, transportation and warehouse management). In order to accomplish it the method of analysis and criticism of literature has been applied. It allowed to conduct an evaluation of the discussed dependence.The preliminary findings indicate that interference is especially high in the low wages sector. To show the consequences the national minimum wage has on the job market, positive changes in employment and unemployment levels in the given period (the increase in the first and the drop in the second one) were presented. This meant that the fears concerning a few thousand job losses, as a result of introducing the minimum wage, were unjustified. In this paper articles and analyses published by German research institutes were used. The statistical data comes from the databases of these institutes and of the Federal Employment Agency. The research period considers the years 2014–2015, specifically one year before and half a year after the introduction of the minimum wage in Germany with the aim of highlighting the changes in the employment size caused by the minimum wage.
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Is the Minimum Wage Detrimental to the Economy?

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EN
The minimum wage in Poland is relatively low. It amounts only 1,600 PLN in 2013. Therefore, it is no surprise that the trade unions have been making efforts to have it raised to the level of 50% of the average salary. However, this has been met with staunch resistance from employers. The liberal model of the economy, which dominates in Poland, favours employers. Moreover, the attitude of the government, politicians, the media, as well as many scientists towards this is not favourable. These are the objections usually raised against the increase of minimum wage: - raising the minimum wage entails unemployment growth; - an increase in the minimum wage entails an increase in the average pay, with a consequent increase in the inflation rate; - the amount of the minimum wage and its growth rate is frequently the basis for an index-linked pay increase in the budget institutions and some social benefits, which results in an increase in fixed budget spending, which is not justified economically; - the minimum wage level, regarded by employers as too high, results in the practice of paying workers outside the official payroll, thereby extending the grey area; - an increase in the minimum wage is a threat to businesses, especially to micro-enterprises, which operate on the brink of insolvency and may face bankruptcy; - an increase in the minimum wage raises the cost of labour and makes businesses less competitive. This paper, in its later part, provides arguments against the allegations. There is a one-sided view of the issue of the minimum wage in Poland. Wages are regarded exclusively as an element of the cost of labour and, as such, they should not increase as this is detrimental to entrepreneurs and to the economy. Such analyses disregard the social and economic (in a broad context) aspects of having a minimum wage.
EN
The opinion provides an analysis of the compatibility of the Act on the Minimum Wage (MiLoG), based on which the obligation to pay minimum wage applies to all employees, irrespective of the Member State in which the registered office of the employer is located, with the provisions of primary and secondary law of the European Union in terms of internal market freedoms and, in particular, the provision of services and posting of workers. Referring to the European legislation, the author points out two main issues: the Act on the Minimum Wage seems to be in conformity with EU law in so far as it concerns posted workers. Based on the case law of the Court of Justice of the European Union in similar cases, she expresses an opinion that these provisions may be inconsistent with the regulations on the free movement of services in relation those who are not covered by the EU definition of a posted worker.
EN
The paper looks at the issue of minimum wage in Poland and other EU member states. First, the definitions, measurement, dynamics and legislation related to the minimum wage are introduced. In the next section the authors discuss whether it is reasonable to regionally diversify the minimum wage in Poland, as the analysis shows that such economic indicators as the average wage, labour productivity and costs of living vary depending on the region. Authors claim that these factors speak in favor of regional diversification of the minimum wage.
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Paper attempts to empiricaly verify a non-linear (parabolic) dependence of employment in Poland on minimum wage to average wage ratio (Kaitz coefficient). The aim of the analysis is to find the optimal value of the Kaitz coefficient. The obtained result confirms the hypothesis on a non-linear nature of the investigated dependence. However, during the minimum wage evaluation process it is worth noting that the Kaitz coefficient's influence on the employment is bi-directional. Increase in the Kaitz coefficient value will only have a negative effect on employment after a certain threshold is crossed. Results pre-sented in the paper allow to identify such a critical value and to establish the coefficient value intervals with negative and positive influence on employment.
PL
Celem artykułu jest ocena zależności między wynagrodzeniem minimalnym, zatrudnieniem i bezrobociem w Polsce. Przedstawiono przegląd teoretycznych aspektów płacy minimalnej, głównych motywacji za jej stosowaniem, a także potencjalnych negatywnych konsekwencji. Płaca minimalna w Polsce zostaje przedstawiona na tle innych krajów Unii Europejskiej. Wykorzystując metodę Toda-Yamamoto oraz dane kwartalne GUS i ILOSTAT obejmujące lata 2002–2019, zbadano przyczynowość Grangera między indeksem Kaitza a wybranymi wskaźnikami rynku pracy. Wyniki wskazują na istnienie jednokierunkowej przyczynowości Grangera między wskaźnikiem Kaitza a ogólną stopą bezrobocia. Nie wykryto podobnych zależności w przypadku pozostałych badanych wskaźników, w tym między innymi stopy zatrudnienia i stopy bezrobocia wśród osób młodych.
EN
The paper’s primary goal is the evaluation of the relationship between minimum wage, employment, and unemployment in Poland in the past two decades. It presents an overview of theoretical aspects of minimum wages, the main motivations behind its implementation, as well as potential negative consequences. The minimum wage in Poland is presented in comparison to other European Union countries. Finally, using a Toda-Yamamoto approach and quarterly data covering the years 2002–2019, the Granger causality between the Kaitz index and selected labour market indicators is examined. The results indicate the presence of unidirectional Granger causality between the Kaitz index and the general unemployment rate. It does not indicate similar relationships for other examined indicators, including employment rate and youth unemployment rate.
EN
The article considers pertinent issues related to social policymaking and its implementation in Ukraine. Emphasis is placed on remuneration as the key element of ensuring citizens’ welfare and economic development of the state. Remuneration plays one of the most important roles in the economic system and ensuring a decent standard of living. The wage reflects the employee’s welfare level and should be correlated with the qualification level and productivity in the production spheres or determined according to the set qualification criteria, quality assessment system and efficiency of employees in non-production spheres. Low remuneration standards and low correlation between wages and productivity affect the motivation of the workforce and reduce its economic and labour activity. The analysis of the minimum wage and subsistence level as the categories defining the status and directions of economic and social policy of the state has been performed. The minimum wage has a decisive influence on many social and economic processes. A significant issue in Ukraine is that establishing the minimum wage in the legislation is made without objective analysis and taking into account the financial and economic conditions that should be the basis for the state social policymaking. The minimum wage directly affects the volume and structure of the expenditure part of state and local budgets, as it is one of the basic elements for making the payroll of budgetary institutions and organizations. For business structures, the minimum wage is an indicator that reflects the economic and social policy of the state, as well as a microeconomic category that affects their current business activities and the production and financial strategy making. Some aspects of the current social protection system in Ukraine have been described. One of the main issues in Ukraine is the excessive number of legislative acts regulating social protection matters. Another important issue is that a significant number of benefits and social transfers, which are stipulated in the legislation and guaranteed to the citizens, cannot be implemented due to lack of financial resources in the state budget. Today, one of the priority tasks of the state policy is to address issues of reforming the social protection system and the introduction of new efficient mechanisms for financing and managing the social services system. It has been noted about the need to develop and set in the legislation a system of social standards and norms, as well as the development of a standardised mechanism for determining the minimum wage and subsistence level based on and depending on the socio-economic development indicators.
Oeconomia Copernicana
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2017
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vol. 8
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issue 1
21-36
EN
Research background: The government of the Czech Republic has agreed to an increase in the minimum monthly wage as of the beginning of 2017 to 11,000 CZK, which represents a year-over-year increase of over 11 %. The government is thus fulfilling its objective set out in February 2014 and stipulated in the Government Statement of Purpose, i.e. to approximate the minimum wage to 40 % of average wages. Purpose of the article: The purpose of the article is to assess the adequacy of the Government Minimum Wage Valorization Policy, in particular from two points of view. Firstly, in view of selected macroeconomic indicators in the Czech Republic — the development of consumer prices, average gross wages, economic growth and workforce productivity. Secondly, in comparison with other EU member states which have introduced the institution of a minimum wage. Methods: In order to assess the adequacy of government policy to improve the social protection of the rights of the working population, a background research was conducted into the literature of important studies on the effects of minimum wages on unemployment, while the development of average gross wages in the CR, the minimum monthly wages in the CR and the Kaitz index were also analyzed. Furthermore, an evaluation of selected macroeconomic indicators in the Czech Republic was performed by means of time lines and the percentage representation of employees in the individual gross wage bands according to sex and type of economic activity. Last, but not least, a comparison was made of minimum wages, real gross domestic product per capita and workforce productivity in Euros and in purchasing power standards between the Czech Republic and countries which have enacted the institution of minimum wages. Findings & Value added: The minimum wage in the Czech Republic is the fifth lowest in the EU. In the long term, it is earned by approximately 3% of employees, which is less than the rate common in other EU countries. Currently, the amount of the minimum wage is below the threshold of income poverty. In comparison with the GDP per capita in PPS and real labour productivity per person employed in other EU countries, the position of the Czech Republic is significantly better, although other EU countries offer higher minimum wages. The decision of the current government to significantly increase the minimum wage as of 2017 is correct.
EN
The minimum wage is the wage policy instrument that affects, among others, labor costs and elimination of negative forms of competition. In political-economic and scientific circles there is an ongoing discussion on the legitimacy of raising the minimum wage and its impact on employment. The main aim of this study is to determine the impact of changes in the minimum wage on labor demand of young people in Poland. It has been realized through three specific aims. On the basis of causality test it has been shown that both the level of the minimum wage and its relation to average earnings are the Granger causes of the number of working people aged 15-29 in Poland in the period 1990-2013. The results of the econometric model estimation showed, ceteris paribus, the negative impact of both these variables on the demand for labor of young people, with the minimum wage effect being lagged by one year. The variant forecasts until 2020, with different assumptions about the minimum wage, indicate the largest number of working if the minimum wage does not exceed 40% of the average earnings, while maintaining the current growth rate of the minimum wage. A noticeable decrease in employment is yet expected in the case of a large increase in this wage, regardless of its relation to the average earnings.
EN
Research background: The amount of the minimum wage is, in some sense, an indicator of the economic level of a country. There are considerable differences in this indicator between the countries of the Organisation for Economic Co-operation and Development (OECD). At the same time, the minimum wage is also an instrument that largely regulates people's behaviour and affects different areas of life. Purpose of the article: The objective of this study is to determine the relations between the minimum wage and individual smoking-related indicators in a sample of selected OECD countries (16 countries). The study answers the question of whether people in countries with lower minimum wages (lower development) smoke more than in countries with higher minimum wages. Methods: Four variables entered into the analytical processing, the minimum wage, daily smokers (age 15+), daily smokers (age 15-24) and tobacco consumption in grams per capita (age 15+). The data were collected between 2011 and 2017. The analysis was carried out in three steps ? descriptive analysis, cluster analysis and regression analysis. Findings & Value added: It has been found that the minimum wage negatively affects smoking and tobacco consumption, i.e. in developed countries, where the minimum wage is higher, people smoke less. Regarding the evaluation of minimum wage and tobacco consumption, countries such as Austria, New Zealand or the United States can be considered positive. On the other hand, opportunities for improvement can be seen in countries such as the Czech Republic, Spain, Estonia and Israel. The study highlights the importance of the effect of the minimum wage on selected smoking-related indicators in selected OECD countries. In all three cases, there was a negative relation; therefore, smoking can be expected to decrease, if the minimum wage is increased.
PL
W opracowaniu podejmuje się próbę wstępnej ekonomiczno-instytucjonalnej analizy regulacji ogólnokrajowej płacy minimalnej, obowiązującej w Niemczech od 1 stycznia 2015 r. Rozważaniom poddano nowe rozwiązania instytucjonalne, ich potencjalne efekty ekonomiczne oraz kwestie ich zgodności z dotychczasowym ładem gospodarczym.
EN
The study attempts to conduct the preliminary economic and institutional analysis of national minimum wage regulations which went into force in Germany on 1 January 2015. The main points of research include new institutional arrangements, their potential economic effects and compliance with the existing economic order.
EN
A strong argument against raising the minimum wage, often voiced in US policy debates, is that a higher minimum wage will have adverse effects on job opportunities. Considerable effort has been devoted to providing quantitative estimates of the employment effects of the minimum wage with quite mixed results. We review this literature before turning to estimates of the impact of state level differences in the level of the minimum wage on youth employment in local labor markets in the Great Lakes Region of the US. We find that a higher minimum wage level is associated with higher earnings, lower employment, and reduced worker turnover for those in the 14 to 18 age group. For workers aged 19 to 21 and 22 to 24, we find less consistent evidence of important minimum wage effects on earnings and employment.
PL
W debatach politycznych w USA często powraca argument o rzekomo negatywnym wpływie podwyższenia płacy minimalnej na perspektywy zatrudnienia. Wiele wysiłku włożono w zgromadzenie ilościowych danych szacunkowych dotyczących tego zagadnienia. Uzyskane wyniki należy uznać za niejednoznaczne. Autorzy artykułu analizują dostępną literaturę przedmiotu, a następnie przechodzą do oceny wpływu różnic wysokości płacy minimalnej na poziomie stanowym na zatrudnienie młodzieży na rynkach pracy w regionie Wielkich Jezior. Zaobserwowano związek wyższego poziomu płacy minimalnej z wyższymi zarobkami, niższym zatrudnieniem i spadkiem rotacji pracowników w grupie wiekowej od 14 do 18 lat. W wypadku pracowników w wieku od 19 do 21 lat i od 22 do 24 lat trudniej zaobserwować wyraźny wpływ płacy minimalnej na poziom wynagrodzeń i zatrudnienia.
EN
The paper is a continuation of the presentation of Rothbard’s criticism of state interventionism in economy. It is focused on its triangular version. As a triangular intervention we classify price controls, minimum wage, product regulation, including all sorts of monopolistic privileges, licenses and tariffs, production and employment standards, patents and copyright, and prohibition. The article also presents Rothbard’s views on the nature of monopoly and the possibility to create monopoly prices in the free market. Following Rothbard, we consider the mechanisms of statism and its side effects for entrepreneurial activity, violating not only the economic sphere, but also the ethics of liberty.
PL
Unia Europejska nie posiada kompetencji do ustalania wynagrodzeń, ale może zaproponować wspólne kryteria, które można wziąć pod uwagę przy ich ustalaniu w poszczególnych państwach członkowskich. Komisja Europejska przedłożyła zatem projekt dyrektywy w sprawie adekwatnych wynagrodzeń minimalnych w Unii Europejskiej. Jej równorzędnymi celami są ustanowienie ram prawnych na poziomie Unii w celu zapewnienia godziwych płac minimalnych oraz wzmocnienie procesów prowadzenia negocjacji zbiorowych w UE. Płaca minimalna nie ma być jednolita w całej Unii, nie ma też planów harmonizacji systemów jej ustalania. Ponadto wszelkie środki przewidziane przez dyrektywę byłyby stosowane w sposób zróżnicowany, w zależności od rozwiązań i tradycji obowiązujących w poszczególnych państwach członkowskich, z pełnym poszanowaniem ich kompetencji, drogą stopniowego wdrażania w celu osiągnięcia pewnych minimalnych standardów. Mimo to projekt już obecnie spotyka się z krytyką niektórych państw członkowskich ze względu na ingerencję w ich kompetencje, a także niektórych posłów do Parlamentu Europejskiego ze względu na swój niedostatecznie „ambitny” charakter.
EN
The European Union has no competencies in the fifi eld of directly setting wages, but it can propose common criteria to be taken into consideration when wages are set on a Member State level. The European Commission is therefore proposing a directive on adequate minimum wages in the European Union. Its twin objectives would be to establish a framework at Union level to ensure fair minimum wages, their adequacy and an increase in their accessibility by workers, and to strengthen collective bargaining in Europe, as high collective bargaining coverage tends to lead to lower share of low-wage workers. The minimum wage will not be uniform across the EU, nor there are any plans to harmonise the systems of setting it. In addition, any possible measures would be applied in a differentiated manner, depending on the systems applicable in particular Member States as well as traditions followed therein, in full respect of the competencies of the Member States, in order to achieve minimum standards through gradual implementation. Nevertheless the proposal is already facing criticism of certain Member States for intrusion into their competencies, as well as of some members of the European Parliament for not being ‘ambitious’ enough.
PL
Unia Europejska nie posiada kompetencji do ustalania wynagrodzeń, ale może zaproponować wspólne kryteria,  które można wziąć pod uwagę przy ich ustalaniu w jej poszczególnych państwach członkowskich.  Komisja Europejska przedłożyła zatem projekt dyrektywy w sprawie adekwatnych wynagrodzeń minimalnych w Unii Europejskiej, przyjęty następnie przez Parlament Europejski i Radę.  Równorzędnymi celami dyrektywy są ustanowienie ram prawnych na poziomie Unii w celu zapewnienia godziwych płac minimalnych, oraz wzmocnienie procesów prowadzenia negocjacji zbiorowych w UE.  Płaca minimalna nie ma  być jednolita w całej Unii, nie ma też planów harmonizacji planów systemów jej ustalania.  Ponadto wszelkie środki przewidziane przez  dyrektywę mają być stosowane w sposób zróżnicowany,  w zależności od  rozwiązań i  tradycji obowiązujących w poszczególnych  państwach członkowskich, z pełnym poszanowaniem ich kompetencji,  drogą stopniowego  wdrażania w celu osiągnięcia pewnych minimalnych standardów. Mimo to dyrektywa spotkała się z konsekwentną krytyką  niektórych państw członkowskich  ze względu  na ingerencję w ich kompetencje,  co czyni otwartą  odpowiedź na pytanie, czy stawiane jej cele nie będą  rzeczywiście realizowane tylko ze względu  na swój w sumie dość ograniczony charakter. 
EN
The European  Union has no competencies in the field of directly setting wages, but it can propose common criteria to be taken into consideration when wages are set on a Member State level. The European Commission has therefore proposed a directive on adequate minimum wages in the European Union, subsequently adopted by the European Parliament and the Council. Its twin objectives were to establish a framework at Union level to ensure fair minimum wages, their adequacy and an increase in their accessibility by workers, and to strengthen collective bargaining in Europe, as high collective bargaining coverage tends to lead to lower share of low-wage workers. The minimum wage will not be uniform across the EU, nor there are any plans to harmonise the systems of setting it. In addition, any ill not be uniform across the EU, nor there are any plans to harmonise the systems of setting it. In addition, any possible measures will be applied  in a differentiated manner, depending on the systems applicable in particular Member States as well as traditions followed therein, in full respect of the competencies of the Member States, in order to achieve minimum standards through gradual implementation. Nevertheless, the directive has faced consistent criticism of certain Member States for intrusion into their competencies, and in consequence it remains an open question whether its objectives would only  be fulfilled due to their ultimately limited nature.
PL
W niniejszej pracy omówione zostaną założenia wprowadzonej przez rząd płacy minimalnej, z punktu widzenia narzędzi teorii mikroekonomii. Wskazane zostaną możliwe różne efekty jej oddziaływania na gospodarkę. Z zaprezentowanych w artykule rozważań jasno wynika, że jak do tej pory brak nam wiedzy empirycznej, by możliwie wiarygodnie prognozować wpływ płacy minimalnej na funkcjonowanie wielu obszarów gospodarczych. Możliwe jest jedynie wytyczenie prognozy kierunku rozwoju.
EN
In this paper the minimum wage and its assumption, which was established by the government, will be discussed. The author would like to present the impact of minimal wage on the economy. The presented consideration allow to conclude that there is a lack of empirical knowledge about the minimum wage and prediction their impact on the functioning of many economic area. We can only forecast the direction of development.
EN
The minimum wage is one of the most basic policy tools to provide workers with an adequate income and reduce excessive income inequalities. Traditional models of the labour market predict, however, that setting the minimum wage above the market-clearing level will lead to lower employment, especially for the least efficient workers. Recent experience in Latin American countries is in this context quite confusing – in some of them the minimum wage rose significantly, reducing wage disproportions, but at the same time employment increased and the informal sector shrank considerably. The trends were not stable, with a marked reversal visible in the last few years. The aim of the paper is to identify mechanisms through which the minimum wage affects labour market aggregates and to assess its impact on employment and income inequalities. Empirical data is analyzed for the region’s biggest economies.
PL
Płaca minimalna jest jednym z podstawowych narzędzi zapewnienia pracownikom godnego dochodu oraz redukowania jego nadmiernych nierówności. Jednak tradycyjne modele rynku pracy przewidują, że ustalenie płacy minimalnej powyżej poziomu oczyszczającego rynek doprowadzi do spadku zatrudnienia, zwłaszcza w przypadku najmniej wydajnych pracowników. W tym kontekście niedawne doświadczenia krajów Ameryki Łacińskiej są zastanawiające – w niektórych z nich płace minimalne znacznie wzrosły, co doprowadziło do zmniejszenia dysproporcji wynagrodzeń, ale jednocześnie wzrosło także zatrudnienie, a sektor nieformalny istotnie się skurczył. Trendy te nie okazały się jednak stabilne i po kilku latach wyraźnie się odwróciły. Celem artykułu jest identyfikacja mechanizmów, poprzez które płaca minimalna oddziałuje na zmienne rynku pracy, oraz ocena jej wpływu na zatrudnienie i nierówności dochodu. Do analizy wykorzystano dane głównych gospodarek regionu.
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