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Department of Economics, WU (Wirtschaftsuniversität Wien) Growth and Employment in Europe: Sustainability and Competitiveness, Department of Economics, WU (Wirtschaftsuniversität Wien)

No 24:
On the Empirics of Minimum Wages and Employment: Stylized Facts for The Austrian Industry

Christian Ragacs ()

Abstract: We ask for the empirical evidence of the textbook theory of minimum wages for the Austrian Industry. The bargaining result of unions and firms is interpreted as a minimum wage, as the bargaining situation in Austria may be described best by a "right to manage-model". Based on the analysis of micro-founded "employment functions" in contrast to the predictions of the textbook analysis no significant negative effect of minimum wages on employment is found.

Keywords: Minimum Wages; Employment; Austrian Industry; (follow links to similar papers)

JEL-Codes: J23; J31; (follow links to similar papers)

April 2003

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