Minimum wages in a dual labour market. Evidence from the 2019 minimum-wage hike in Spain
Organisation for Economic Co-operation and Development, Paris
OECD Publishing - Paris
2023
46 p.
minimum wage ; labour market segmentation ; employment
OECD Social, Employment and Migration Working Papers
298
Wages and wage payment systems
https://doi.org/10.1787/7ff44848-en
English
Bibliogr.
"This paper provides an assessment of the 2019 minimum-wage hike in Spain, which increased the minimum wage by 22% and directly concerned 7% of dependent employees. The assessment is based on an individual-level analysis that follows the outcomes of workers that were employed in the year before the reform over time. Among directly affected workers, the hike in the minimum wage increased full-time equivalent monthly earnings by on average 5.8% and reduced employment by -0.6%. The wage effects are stronger for workers on open-ended contracts, while the employment effects are stronger for workers on fixed-term contracts."
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