Lowering wage inequality with the minimum wage increase in Slovenia
by Suzana Laporšek; Milan Vodopivec; Matija Vodopivec
International Journal of Sustainable Economy (IJSE), Vol. 13, No. 3, 2021

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.

Online publication date: Wed, 28-Jul-2021

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