"The aim of this paper is to estimate the effect of minimum wage on employment rates taking into account potential nonlinearity. Focusing on three age groups, we find a significant nonlinear relationship between the minimum wage and employment for the young (15-24 years) and older working-age (55-64 years) groups, whereas for the prime-age workers (25-54 years) the minimum wage does not have a significant non-linear effect. Negative effect of the minimum wages on employment is stronger if the labor markets are otherwise strictly regulated and when workers are relatively unproductive."

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