The short-term impact of the minimum wage on employment: evidence from Spain

Minimum wages have been widely discussed in the literature. The minimum wage impact on employment strongly depends on labor market concentration and the point at which it is located in the income distribution. Therefore, its study essentially involves exploring whether it has been set too far, beyon...

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Detalles Bibliográficos
Autor: Fernández-Baldor Laporta, Pablo María
Tipo de recurso: tesis de maestría
Fecha de publicación:2022
País:España
Institución:Universidad de Alcalá (UAH)
Repositorio:e_Buah Biblioteca Digital Universidad de Alcalá
Idioma:inglés
OAI Identifier:oai:ebuah.uah.es:10017/54176
Acceso en línea:http://hdl.handle.net/10017/54176
Access Level:acceso abierto
Palabra clave:Minimum Wage
Employment
Job Loss
Propensity Score Matching
Difference-in-Differences
Economía
Economics
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spelling The short-term impact of the minimum wage on employment: evidence from SpainFernández-Baldor Laporta, Pablo MaríaMinimum WageEmploymentJob LossPropensity Score MatchingDifference-in-DifferencesEconomíaEconomicsMinimum wages have been widely discussed in the literature. The minimum wage impact on employment strongly depends on labor market concentration and the point at which it is located in the income distribution. Therefore, its study essentially involves exploring whether it has been set too far, beyond the competitive market wage. In 2019, the Spanish government decided to raise the minimum wage by 22.3%. This increase is of a previously unseen magnitude. Using rich administrative data, we combine Propensity Score Matching and a Di erence-in-Di erences model to evaluate the short-run employment e ect of this policy. We nd that the reform increased the probability of job loss within a range of 0.38 pp. (7.8%) and 0.44 pp. (9.2%) for workers below the new minimum wage, which implies an employment elasticity between 0.3 and 0.4. In addition, our results suggest that the bulk of this e ect is concentrated in the group of workers furthest from the new minimum wage. This is the segment of the income distribution that bore the bulk of the employment costs of the minimum wage increase.Máster Universitario en Análisis Económico Aplicado (M210)Jimeno Serrano, Juan FranciscoUniversidad de Alcalá20222022-01-01master thesishttp://purl.org/coar/resource_type/c_bdccNAhttp://purl.org/coar/version/c_be7fb7dd8ff6fe43info:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10017/54176reponame:e_Buah Biblioteca Digital Universidad de Alcaláinstname:Universidad de Alcalá (UAH)Inglésengopen accesshttp://purl.org/coar/access_right/c_abf2Attribution-NonCommercial-NoDerivatives 4.0 Internationalhttp://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccessoai:ebuah.uah.es:10017/541762026-06-18T11:13:07Z
dc.title.none.fl_str_mv The short-term impact of the minimum wage on employment: evidence from Spain
title The short-term impact of the minimum wage on employment: evidence from Spain
spellingShingle The short-term impact of the minimum wage on employment: evidence from Spain
Fernández-Baldor Laporta, Pablo María
Minimum Wage
Employment
Job Loss
Propensity Score Matching
Difference-in-Differences
Economía
Economics
title_short The short-term impact of the minimum wage on employment: evidence from Spain
title_full The short-term impact of the minimum wage on employment: evidence from Spain
title_fullStr The short-term impact of the minimum wage on employment: evidence from Spain
title_full_unstemmed The short-term impact of the minimum wage on employment: evidence from Spain
title_sort The short-term impact of the minimum wage on employment: evidence from Spain
dc.creator.none.fl_str_mv Fernández-Baldor Laporta, Pablo María
author Fernández-Baldor Laporta, Pablo María
author_facet Fernández-Baldor Laporta, Pablo María
author_role author
dc.contributor.none.fl_str_mv Jimeno Serrano, Juan Francisco
Universidad de Alcalá
dc.subject.none.fl_str_mv Minimum Wage
Employment
Job Loss
Propensity Score Matching
Difference-in-Differences
Economía
Economics
topic Minimum Wage
Employment
Job Loss
Propensity Score Matching
Difference-in-Differences
Economía
Economics
description Minimum wages have been widely discussed in the literature. The minimum wage impact on employment strongly depends on labor market concentration and the point at which it is located in the income distribution. Therefore, its study essentially involves exploring whether it has been set too far, beyond the competitive market wage. In 2019, the Spanish government decided to raise the minimum wage by 22.3%. This increase is of a previously unseen magnitude. Using rich administrative data, we combine Propensity Score Matching and a Di erence-in-Di erences model to evaluate the short-run employment e ect of this policy. We nd that the reform increased the probability of job loss within a range of 0.38 pp. (7.8%) and 0.44 pp. (9.2%) for workers below the new minimum wage, which implies an employment elasticity between 0.3 and 0.4. In addition, our results suggest that the bulk of this e ect is concentrated in the group of workers furthest from the new minimum wage. This is the segment of the income distribution that bore the bulk of the employment costs of the minimum wage increase.
publishDate 2022
dc.date.none.fl_str_mv 2022
2022-01-01
dc.type.none.fl_str_mv master thesis
http://purl.org/coar/resource_type/c_bdcc
NA
http://purl.org/coar/version/c_be7fb7dd8ff6fe43
dc.type.openaire.fl_str_mv info:eu-repo/semantics/masterThesis
format masterThesis
dc.identifier.none.fl_str_mv http://hdl.handle.net/10017/54176
url http://hdl.handle.net/10017/54176
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution-NonCommercial-NoDerivatives 4.0 International
http://creativecommons.org/licenses/by-nc-nd/4.0/
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
Attribution-NonCommercial-NoDerivatives 4.0 International
http://creativecommons.org/licenses/by-nc-nd/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.source.none.fl_str_mv reponame:e_Buah Biblioteca Digital Universidad de Alcalá
instname:Universidad de Alcalá (UAH)
instname_str Universidad de Alcalá (UAH)
reponame_str e_Buah Biblioteca Digital Universidad de Alcalá
collection e_Buah Biblioteca Digital Universidad de Alcalá
repository.name.fl_str_mv
repository.mail.fl_str_mv
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