| Abstract [eng] |
The object of the work - the minimum wage. The aim - to study the impact of the minimum wage on labour market indicators. The results of the research showed showed that the level of the minimum wage is set by the state, employers and by consensus of the trade union. Currently, more than 90 percent of all countries in the world have laws and regulations that set a minimum wage. In the European Union, 22 of the 27 Member States currently have a minimum national wage, although countries such as Sweden, Finland, Denmark, Switzerland, Australia and Italy do not. These countries choose to set minimum wages through collective bargaining. The size of the minimum income is determined in two ways: as a certain percentage of the average income or on the basis of the minimum subsistence income. Economic indicators should be taken into account by policy makers when setting the minimum wage. If the minimum wage is set too high or increased too much could have an unexpectedly large impact on the country’s population and labour market performance. The literature identifies 16 key labor market indicators that are designed to analyze, compare, and then apply a variety of solutions to improve countries‘ economic development. The impact of the minimum wage on labor market indicators in 2008–2021 has been performed. The analysis showed that Granger is the causal link between the minimum wage and gross domestic product, the unemployment rate, the inactive population, the number of job vacancies and labour force participation. This means that the minimum wage affects these indicators. The result showed that a one-euro increase in the minimum wage would increase the gross domestic product by 105.06 million, the number of inactive population decreases by 0.028%, and the activity of the labour force increases by 0.075%. The model developed between the minimum wage and the number of job vacancies is insignificant, so the impact assessment could not be assessed. |
