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How Do Firms Adjust to Rises in the Minimum Wage?
Katalin Bodnár
Ludmila Fadejeva
Stefania Iordache
Liina Malk
Desislava Paskaleva
Jurga Pesliakaitė
Nataša Todorovič Jemec
Peter Tóth
Robert Wyszyński
其他書名
Survey Evidence from Central and Eastern Europe
出版
Economic Research Department
, 2018
URL
http://books.google.com.hk/books?id=KbcAvwEACAAJ&hl=&source=gbs_api
註釋
We study the transmission channels for rises in the minimum wage using a unique firm-level dataset from eight Central and Eastern European countries. Representative samples of firms in each country were asked to evaluate the relevance of a wide range of adjustment channels following specific instances of rises in the minimum wage during the recent post-crisis period. The paper adds to the rest of literature by presenting the reactions of firms as a combination of strategies, and evaluates the relative importance of those strategies. Our findings suggest that the most popular adjustment channels are cuts in non-labour costs, rises in product prices, and improvements in productivity. Cuts in employment are less popular and occurs mostly through reduced hiring rather than direct layoffs. Our study also provides evidence of potential spillover effects that rises in the minimum wage can have on firms without minimum wage workers.