Minimum Wage in Poland: Economy-wide or Regionally Differentiated?

Abstract

The aim of the paper is to verify the hypothesis that minimum wage may have negative impact on employment in Poland, at least for some workers groups and regions. After having reviewed theoretical literature on minimum wage and having discussed stylized facts on minimum wage in Poland, the authors define econometric model to check the impact of minimum wage on employment in Poland and then discuss the results. The main conclusion of the study is that while minimum wage legislation is not very important for the whole labour market performance it may create adverse effects to employment of some vulnerable groups like young workers. 41