MINIMUM WAGE SETTING AND THE DYNAMICS OF THE CZECH LABOR MARKET

CHALMOVIANSKÝ, Jakub, Daniel NĚMEC and Vlastimil REICHEL. MINIMUM WAGE SETTING AND THE DYNAMICS OF THE CZECH LABOR MARKET. Online. In Nálepová, V., Uhrova, N. Proceedings of the International Scientific Conference ECONOMIC AND SOCIAL POLICY. Ostrava: Vysoká škola PRIGO, 2020, p. 108-129. ISBN 978-80-87291-27-6.

Basic information

• Original name: MINIMUM WAGE SETTING AND THE DYNAMICS OF THE CZECH LABOR MARKET
• Authors: CHALMOVIANSKÝ, Jakub (703 Slovakia, guarantor, belonging to the institution), Daniel NĚMEC (203 Czech Republic, belonging to the institution) and Vlastimil REICHEL (203 Czech Republic, belonging to the institution).
• Edition: Ostrava, Proceedings of the International Scientific Conference ECONOMIC AND SOCIAL POLICY, p. 108-129, 22 pp. 2020.
• Publisher: Vysoká škola PRIGO

Other information

• Original language: English
• Type of outcome: Proceedings paper
• Field of Study: 50202 Applied Economics, Econometrics
• Country of publisher: Czech Republic
• Confidentiality degree: is not subject to a state or trade secret
• Publication form: electronic version available online
• WWW: URL
• RIV identification code: RIV/00216224:14560/20:00116666
• Organization unit: Faculty of Economics and Administration
• ISBN: 978-80-87291-27-6
• ISSN: 2571-1776
• Keywords in English: DSGE model; Impulse response functions; Labor market; Minimum wage; Unemployment
• Tags: International impact, Reviewed

Abstract

The main goal of this paper is to evaluate the impacts of alternative statutory minimum wage settings on the dynamics of the Czech economy and its labor market through the lens of a dynamic stochastic general equilibrium model. Our results are based on a medium-scale model that allows for an analysis of the macroeconomic impacts of the minimum wage. We simulate endogenous variables of the model for a calibration corresponding to the current Czech labor market characteristics and compare them with alternative scenarios for the minimum wage setting and the proportion of unskilled households in the economy. The short-run effects of these alternative scenarios are evaluated with regards to the impulse response functions of selected labor market measures on three exogenous shocks of interest, a technology shock, a shock to the minimum wage setting, and a shock to the unemployment benefits.

Links

• MUNI/A/0880/2019, interní kód MU: Name: Regulácie na trhu práce a trhu nehnuteľností a dynamika šedej ekonomiky v priebehu hospodárskeho cyklu

Investor: Masaryk University, Category A