Replication data for: Who Pays for the Minimum Wage?

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Project Citation:

Harasztosi, Peter, and Lindner, Attila. Replication data for: Who Pays for the Minimum Wage? Nashville, TN: American Economic Association [publisher], 2019. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-07. https://doi.org/10.3886/E116196V1

Project Description

Summary: This paper provides a comprehensive assessment of the margins along which firms responded to a large and persistent minimum wage increase in Hungary. We show that employment elasticities are negative but small even four years after the reform; that around 75 percent of the minimum wage increase was paid by consumers and 25 percent by firm owners; that firms responded to the minimum wage by substituting labor with capital; and that disemployment effects were greater in industries where passing the wage costs to consumers is more difficult. We estimate a model with monopolistic competition to explain these findings.

Scope of Project

JEL Classification:
      J23 Labor Demand
      J24 Human Capital; Skills; Occupational Choice; Labor Productivity
      J31 Wage Level and Structure; Wage Differentials
      J38 Wages, Compensation, and Labor Costs: Public Policy
      L13 Oligopoly and Other Imperfect Markets

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Published Versions

V1 [2019-12-07]

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