Pros and Cons of Minimum Wage
|Author:||Bc. Mikuláš Krupa|
|Year:||2017 - summer|
|Leaders:|| doc. Ing. Tomáš Cahlík CSc.
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||This thesis examines the relationship between the minimum wages and the job market
on the case of 17 EU member countries. We found that minimum wages are indeed generally
contributing to lower employment rates among young workers. Particularly, it is the teenagers
that are being affected most significantly by the increases in the minimum wage. It is in line
with the expectations that if minimum wages have impact on the labour market, then this
influence is most visible on the groups that are more frequently earning minimum wages.
Employment rate is a better indicator of minimum wage effects on the labour market as the
effect on the unemployment rate is much less visible due to various mechanisms that people
use to adjust to the new situation.