Minimum wage – labour market rigidity factor
Currently setting minimum wages is a common practice that targets economic and social aspects. This paper aims to analyse the evolution of the minimum wage in Romania compared to EU Member States and the effects that it generates on employment, labour productivity, reducing social and wage inequalit...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2015-06-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1092.pdf
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| Summary: | Currently setting minimum wages is a common practice that targets economic
and social aspects. This paper aims to analyse the evolution of the minimum wage in
Romania compared to EU Member States and the effects that it generates on employment,
labour productivity, reducing social and wage inequalities etc. Given the current concerns
about the importance of labour market flexibility to be able to respond to different shocks,
as the economic crisis, we evaluate the minimum wage burden as a factor of rigidity in the
labour market in terms of its rise and the ratio between the minimum wage and the average
wage and the perverse effects on employment. |
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| ISSN: | 1841-8678 1844-0029 |