In this paper, the correlation of (major) increases in real minimum wages in Estonia and Czech Republic will be investigated. Especially the correlation with the unemployment rate of the low skilled workers and young workers are being discussed throughout this paper. Out of the multiple linear regressions made in this paper, it appeared that relatively small rises in real minimum wages are correlated with a higher unemployment rate for both young workers and low skilled workers. Major rises in minimum wages are correlated with the opposite: the unemployment rate for both labour groups is correlated with a fall due to the raise.

Cotofan, Maria
hdl.handle.net/2105/39119
Business Economics
Erasmus School of Economics

Tick, Tristan. (2017, September 6). The effect of minimum wages on unemployment. Business Economics. Retrieved from http://hdl.handle.net/2105/39119