The employment consequences of the 2001 rise in the minimum wage

• Authors: Kertesi G. , Kollo J.
• Languages of publication: HU

Abstracts

EN

The Hungarian government increased the minimum wage from HUF 25,500 to HUF 40,000 in January 2001. One year later, the wage floor rose further to HUF 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 labour costs and reduced employment in the small-firm sector and adversely affected the job-retention and job-finding chances for low-wage workers. While the conditions for a positive employment effect were mostly met in depressed regions, the spatial inequalities were amplified, rather than reduced by the measure.

Keywords

EN

EMPLOYMENT; LABOR MARKET; MINIMUM WAGE; UNEMPLOYMENT

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Committee for Economic Sciences of the Hungarian Academy of Sciences
• Journal: Kozgazdasagi Szemle (Economic Review)
• Year: 2004
• Volume: 51
• Issue: 4
• Pages: 293-324
• Document type: ARTICLE

Contributors

author

Kertesi G.

author

Kollo J.

• G. Kertesi, no address given, contact the journal editor

Identifiers

CEJSH db identifier

06HUAAAA00661650