Please use this identifier to cite or link to this item: http://bura.brunel.ac.uk/handle/2438/20899
Title: Minimum Wages and Firm Employment: Evidence from a Minimum Wage Reduction in Greece
Authors: Georgiadis, A
Kaplanis, I
Monastiriotis, V
Keywords: minimum wage;wages;firm employment
Issue Date: 22-May-2020
Publisher: Elsevier
Citation: Economics Letters, Volume 193, 2020
Abstract: © 2020 The Authors. We investigate firm heterogeneity in responses to minimum wage changes leveraging on a policy reform in 2012 in Greece that introduced a youth sub-minimum through a sharp reduction in the minimum wage that was larger for youth. Using administrative linked employer–employee panel data and a difference-in-differences estimator, we find that, although wages decreased across all firms following the policy reform, adult wages decreased by more, whereas youth wages decreased by less in firms with a higher share of youth in employment. We also find that, in these firms, adult employment increased by more, while youth employment increased by less or even decreased and that these changes reflected mainly new hires rather than job separations. These heterogeneous responses to the change in the minimum wage across firms are not entirely consistent with the competitive model of the labour market.
URI: https://bura.brunel.ac.uk/handle/2438/20899
DOI: https://doi.org/10.1016/j.econlet.2020.109255
ISSN: 0165-1765
Other Identifiers: 109255
Appears in Collections:Brunel Business School Research Papers

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