Revisiting the Employment Effects of Minimum Wages in Europe

2018 ◽  
Vol 19 (4) ◽  
pp. 426-465 ◽  
Author(s):  
Michael Christl ◽  
Monika Köppl-Turyna ◽  
Dénes Kucsera
Keyword(s):  
Minimum Wage ◽  
Negative Relationship ◽  
Optimal Level ◽  
Minimum Wages ◽  
European Countries ◽  
Employment Rate ◽  
Eastern European ◽  
Employment Rates ◽  
Eastern European Countries ◽  
The Relationship

AbstractThe aim of this study is to estimate the relationship between the minimum wage and the employment rate of young individuals, taking into account potential non-linearity. In a cross-country setup of European countries, we find a significant nonlinear relationship between the minimum wages and employment rate of young individuals. Theoretically, while low minimum wages can indeed be positively associated with employment, after a certain level of the minimum wage, the relationship turns negative. This implies that there is an optimal level of minimum wages that maximizes the employment rate of young individuals. We additionally show that the negative relationship between minimum wages and employment of young workers is stronger if labor markets are otherwise strictly regulated and when workers are relatively unproductive. Using these results, we are able to calculate country-specific turning points and show that some European countries in our sample might in fact contribute to high unemployment rates among young individuals by setting minimum wages too high. However, in other European countries, especially the Eastern European countries, an increase in minimum wages (up to a certain level) might even lead to higher employment rates of young individuals.

Position in global value chains and wages in Central and Eastern European countries

2022 ◽  
pp. 095968012110537
Author(s):  
Sabina Szymczak ◽  
Aleksandra Parteka ◽  
Joanna Wolszczak-Derlacz
Keyword(s):  
Value Chain ◽  
Global Value Chains ◽  
Final Demand ◽  
European Countries ◽  
Value Chains ◽  
Eastern European ◽  
Micro Data ◽  
Eastern European Countries ◽  
The Relationship ◽  
Import Intensity

This paper examines the relationship between the relative position of industries in Global Value Chains (GVC) and wages in 10 Central and Eastern European countries. We combine GVC measures of global import intensity of production, upstreamness and the length of the value chain with micro-data on workers. We find that the wages of Central and Eastern European countries workers are higher when their industry is at the beginning of the chain or at the end than in the middle. Secondly, wage changes depend on the interplay between upstreamness and GVC intensity. In sectors close to final demand, greater production fragmentation is associated with lower wages.

scholarly journals The relationship between the relative GDP share of agriculture and the unemployment rate in selected Central and Eastern European countries

2017 ◽  
Vol 63 (No. 7) ◽  
pp. 308-317
Author(s):  
Bein Murad A ◽  
 Ciftcioglu Serhan
Keyword(s):  
Granger Causality ◽  
Unemployment Rate ◽  
European Countries ◽  
Regression Equations ◽  
Eastern European ◽  
Causality Tests ◽  
Dynamic Panel Regression ◽  
Granger Causality Tests ◽  
Eastern European Countries ◽  
The Relationship

The study empirically investigates the relationship between the relative GDP share of agriculture and the unemployment rate in a sample of ten Central and Eastern European countries. Utilising the annual data for the sample period 1996–2013, the empirical analysis is carried out using the dynamic panel regression analysis and the Granger causality tests. The estimation results based on the alternative specification of regression equations for the unemployment rate suggest that the unemployment rate is negatively related to the relative GDP share of agriculture. In addition, a similar effect has been obtained for some other explanatory variables we have included in the unemployment equation as controlling variables: higher investment rate and trade openness are likely to lower the rate of unemployment. The financial development has also been found to be negatively related to the unemployment rate, although the statistical significance of its effect depends on the estimation technique used. On the other hand, the GDP growth and the government consumption have been found to be insignificantly related to the unemployment rate. While the Granger causality tests performed for each country produced evidence of a causal effect of the relative GDP share of agriculture in some countries, in some other countries the direction of causality has been found to be from the unemployment rate to the relative GDP share of agriculture. Our findings suggest that agriculture may play a potential role in lowering the prevailing rates of high unemployment; but this potential is likely to vary between countries.  

scholarly journals Changes in the Relationships Between Third World Countries and First World Countries

1995 ◽  
Vol 12 (1) ◽  
pp. 133-144
Author(s):  
Franz J. Hinkelammert
Keyword(s):  
Soviet Union ◽  
Third World ◽  
European Countries ◽  
Eastern European ◽  
Profound Change ◽  
The Soviet Union ◽  
Eastern European Countries ◽  
The Relationship ◽  
First World

AbstractI wish to develop some theses on the changes in the relationship between Third World countries and First World countries, which have been strongly affected by the crisis of socialism in the Soviet Union and in the Eastern European countries. It is a profound change, which came about in the '80s but which had already been developing in the decades prior to that.

scholarly journals The Relationship between Corruption and the Shadow Economy in Ukraine and Other Central and Eastern European Countries

2020 ◽  
Vol 23 (4) ◽  
pp. 7-30
Author(s):  
Valentyna Cherviakova ◽  
Tetiana Cherviakova
Keyword(s):  
Regression Analysis ◽  
Shadow Economy ◽  
Statistical Data ◽  
Statistical Significance ◽  
European Countries ◽  
Eastern European ◽  
Weak Correlation ◽  
Low Levels ◽  
Eastern European Countries ◽  
The Relationship

The article investigates the causes, essence, and peculiarities of corruption and the shadow economy, as well as how they are related, in Ukraine in comparison with other Central and Eastern European countries. A correlation‑regression analysis of statistical data revealed a direct correlation connection of different strengths and statistical significance between levels of corruption and the shadow economy in all Central and Eastern European countries. However, the degree to which corruption impacts the variation in the levels of the shadow economy differs significantly in countries across the region. The key conclusion is that in countries with relatively high levels of corruption and the shadow economy, corruption causes a smaller share of the shadow economy than in countries with relatively low levels of these phenomena. Causes of the weak correlation between levels of corruption and the shadow economy in Ukraine were identified. The main corruption and non‑corruption factors of Ukraine’s economy shadowing were determined. It was concluded that policy and measures to counteract corruption and the shadow economy in Ukraine should be aimed at eliminating their root causes rather than manifestations.

scholarly journals Genre differentiation in A guided Tour through the Museum of Communismby Slavenka Drakulić

2020 ◽  
Vol 4 (1) ◽  
pp. 243-256
Author(s):  
Jakov Sabljić ◽  
Tina Varga Oswald
Keyword(s):  
Cultural Memory ◽  
European Countries ◽  
Eastern European ◽  
Berlin Wall ◽  
Literary Structure ◽  
Eastern Germany ◽  
20Th Anniversary ◽  
Eastern European Countries ◽  
Guided Tour ◽  
The Relationship

On the 20th anniversary of the fall of the Berlin Wall, a Croatian novelist Slavenka Dra-kulić simultaneously in several countries published a collection of essays titled A Guided Tour through the Museum of Communism.The collection consists of eight stories narrated by ani-mals: a mole, a mouse, a dog, a cat, a raven, a parrot, a pig and a bear. The animals talk about neuralgic issues of Communism in former Eastern European countries (Eastern Germany, Czechoslovakia, Poland, Rumania, Albania, Yugoslavia, Hungary and Bulgaria). The genre differentiation is based on determining postmodern variations of basic genre conventions in the process of creating a piece of literature. Fable variations are determined by analyzing the relationship between a fable and other genre forms, such as, an essay, a novella, a legend, a myth. Next to genre differentiation of a literary structure, one can also observe the differen-tiation of its role that has been conditioned by today’s cultural memory. In that manner, my-thologized persons, objects and features of Communism are analyzed as universal symbols of a message, as well as elements of a satiric play. This paper will determine in which ways the above mentioned variations enrich the existent genre forms.

scholarly journals Verification of “Too Much Finance” Hypothesis in Central and Eastern European Countries – Empirical Research

2019 ◽  
Vol 1 (340) ◽  
pp. 115-132
Author(s):  
Wojciech Grabowski ◽  
Iwona Maciejczyk-Bujnowicz
Keyword(s):  
Economic Growth ◽  
Optimal Level ◽  
Entire Group ◽  
Eastern European ◽  
Real Gdp ◽  
Panel Model ◽  
Optimal Value ◽  
Domestic Credit ◽  
Eastern European Countries ◽  
The Relationship

This paper analyses the relationship between the domestic credit to GDP ratio and economic growth in a group of 11 countries in Central and Eastern Europe. The parameters of the econometric model used, were estimated using a pooled regression method and the Blundell‑Bond systemic estimator. The results of our empirical investigation show that the entire group can be divided into 3 homogeneous sub‑groups with different values of the optimal level of domestic credit to GDP ratio. Estimation of the parameters with the use of a panel model show that Latvia, Lithuania, Estonia and Slovakia would probably have reached a higher level of economic growth if the analysed coefficient had been at a level of 0.48. In the case of the sub‑group encompassing Poland, Czech Republic and Hungary, the optimal value of the analysed coefficient turned out to be 0.6. In the case of the Bulgaria, Croatia and Romania sub‑group, the development of the financial system, which is represented in this article by the ratio of domestic credit to GDP, does not seem to have any impact on the rate of growth of real GDP.

scholarly journals Spillover Index Approach in Investigating the Linkage between International Tourism and Economic growth in Central and Eastern European Countries

2020 ◽  
Vol 12 (18) ◽  
pp. 7604
Author(s):  
Viorica Chirilă ◽  
Gina Ionela Butnaru ◽  
Ciprian Chirilă
Keyword(s):  
Economic Growth ◽  
Point Of View ◽  
European Countries ◽  
International Tourism ◽  
Eastern European ◽  
East European ◽  
Index Approach ◽  
Eastern European Countries ◽  
The Impact ◽  
The Relationship

The present study analyses the relationship between economic growth and tourism growth at the level of Central and East European countries, using the spillover indices approach. Based on the monthly data obtained for the period 2000–2019, the analysis of this paper presents certain empirical results. Firstly, the relationship economic growth-international tourism grow is not stable over time, both from the point of view of its size and its direction, which suggests that the specific activities of international tourism contribute to the economic growth and hypotheses according to which international tourism growth causes economic growth are time-dependent. Secondly, the relationship economic growth-international tourism growth is dependent on certain major events, such as the economic and financial crisis that started in 2008 and the debt crises from 2010. The results obtained show that the impact of these events influences the direction of the relationship between international tourism and economic growth which becomes more accentuated during the economic growth periods.

scholarly journals Minimum Wage and Unemployment in Greek Labour Market: A Descriptive Analysis

2014 ◽  
Vol 4 (4) ◽  
pp. 36 ◽  
Author(s):  
Kostas Karamanis ◽  
Charis Naxakis
Keyword(s):  
Labour Market ◽  
Minimum Wage ◽  
Wage Rate ◽  
Descriptive Analysis ◽  
Minimum Wages ◽  
Wage Level ◽  
Employment Rates ◽  
The Relationship

The purpose of this paper is to investigate the relationship between the minimum wage level and the rates of unemployment and employment in the Greek labour market. More specifically, this study analyses the evolution of the minimum wage during the period 2000-2013 and also whether these changes have really affected the unemployment and employment rates or not. The main conclusion of our study supports several other studies conclusions suggesting that the level of minimum wage in Greece did not really affect the unemployment and employment rates. The views of economists on effect of the establishing of minimum wages are quite contradictory. The evaluation of relationship between labour market and minimum wage rate is either positive or negative or even not related at all, depending on the assumptions about characteristics of labour market. 

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