MINIMUM WAGE SETTING AND THE DYNAMICS OF THE CZECH LABOR MARKET
| Authors | |
|---|---|
| Year of publication | 2020 |
| Type | Article in Proceedings |
| Conference | Proceedings of the International Scientific Conference ECONOMIC AND SOCIAL POLICY |
| MU Faculty or unit | |
| Citation | |
| Web | https://www.narodacek.cz/conference-proceedings-2020/ |
| Keywords | DSGE model; Impulse response functions; Labor market; Minimum wage; Unemployment |
| Description | The main goal of this paper is to evaluate the impacts of alternative statutory minimum wage settings on the dynamics of the Czech economy and its labor market through the lens of a dynamic stochastic general equilibrium model. Our results are based on a medium-scale model that allows for an analysis of the macroeconomic impacts of the minimum wage. We simulate endogenous variables of the model for a calibration corresponding to the current Czech labor market characteristics and compare them with alternative scenarios for the minimum wage setting and the proportion of unskilled households in the economy. The short-run effects of these alternative scenarios are evaluated with regards to the impulse response functions of selected labor market measures on three exogenous shocks of interest, a technology shock, a shock to the minimum wage setting, and a shock to the unemployment benefits. |
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