Download this Paper Open PDF in Browser

What Role Can Minimum Wages Play in Overcoming the Low-wage Model in Central and Eastern Europe?

25 Pages Posted: 20 Oct 2016  

Jan Drahokoupil

University of Mannheim - Mannheim Centre for European Social Research (MZES); European Trade Union Institute (ETUI)

Date Written: October 19, 2016

Abstract

This working paper gives an overview of minimum wage policies in Central and Eastern Europe. It shows that minimum wages are an effective tool for reducing inequality by raising the lowest incomes. Minimum wages can have some, albeit limited, role in increasing aggregate productivity and promoting economic upgrading. However, to be truly effective in raising wages and productivity, minimum wages would need to be accompanied by a stronger role for collective bargaining in CEE countries.

Keywords: minimum wage; low wages; productivity; collective bargaining; income distribution; employment; Central Europe; Eastern Europe

Suggested Citation

Drahokoupil, Jan, What Role Can Minimum Wages Play in Overcoming the Low-wage Model in Central and Eastern Europe? (October 19, 2016). ETUI Research Paper - Working Paper 2016.09. Available at SSRN: https://ssrn.com/abstract=2854936

Jan Drahokoupil (Contact Author)

University of Mannheim - Mannheim Centre for European Social Research (MZES) ( email )

D-68131 Mannheim
Germany

HOME PAGE: http://drahokoupil.blogspot.com

European Trade Union Institute (ETUI) ( email )

B-1210 Brussels
Belgium

Paper statistics

Downloads
22
Abstract Views
138