The Impact of Minimum Wage on Employment. The Case of Romania
摘要
The minimum wage is probably one of the most debated topics among economists, and its impact on other macroeconomic variables is challenged by numerous studies. Therefore, it is of high importance to understand how the minimum wage influences the economy. The heightened attention that this index receives at the European level is noticeable both through the recently published directives and through the numerous studies dealing with this subject. This article aims to analyze how the minimum wage, together with a set of other relevant economic indicators, influences the employment rate in Romania, both in total and among young people, because the expectation is that the impact is greater among young people, the latter being the ones who can get easier a minimum salary at the beginning of their career. The considered period is 2000–2022, and the examined variables are the following: in-work productivity, minimum wage, and the employment rate. Regression models were estimated for each category separately: total employment, as well as young women and men under 24 years, male and female employed.