On the peculiar relevance of a fundamental dilemma of minimum-wage regulation in post-socialism – apropos of an international investigation

István R. Gábor

Abstract


To the extent minimum-wage regulation is effective in fighting against excessive earnings handicaps of those at the lower end-tail of earnings distribution, it may have the side-effect of worsening their employment prospects. A demand-and-supply interpretation of data on the relative employment rate and earnings position of the least educated in the EU27 suggests that the resulting dilemma might be particularly relevant for minimum-wage policies in post-socialist countries.

Keywords


minimum wage, earnings dispersion, demand and supply of labour, wage and employment discrimination

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DOI: http://dx.doi.org/10.14267/cjssp.2010.02.04

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ISSN: 2062-087X

DOI: 10.14267/issn.2062-087X