Title: Lowering wage inequality with the minimum wage increase in Slovenia

Authors: Suzana Laporšek; Milan Vodopivec; Matija Vodopivec

Addresses: Faculty of Management, University of Primorska, Izolska vrata 2, SI-6101 Koper, Slovenia ' Faculty of Management, University of Primorska, Izolska vrata 2, SI-6101 Koper, Slovenia ' OECD, 2 Rue André Pascal, 75016 Paris, France

Abstract: The paper analyses the development of wage inequality in Slovenia after a 22.9% increase in the minimum wage in 2010. The analysis is based on individual-level data, covering all workers and firms in Slovenia over the 2005-2015 period. The descriptive findings show that with the minimum wage increase, wage inequality in Slovenia lowered. The effect was stronger for women, young and less-educated or low-occupations workers, which are characterised to be most affected by the minimum wage policy. Further, results also show that a decline in wage inequality was higher among workers employed in small and unincorporated firms and those working in market services.

Keywords: minimum wage; wage inequality; interdecile ratios; Gini coefficient; Slovenia.

DOI: 10.1504/IJSE.2021.116624

International Journal of Sustainable Economy, 2021 Vol.13 No.3, pp.306 - 321

Received: 02 Jun 2020
Accepted: 20 Dec 2020

Published online: 19 Jul 2021 *

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