A comparative assessment of minimum wage employment in Europe

Abstract

The mission of the Economic and Social Research Institute is to advance evidencebased policymaking that supports economic sustainability and social progress in Ireland. ESRI researchers apply the highest standards of academic excellence to challenges facing policymakers, focusing on 12 areas of critical importance to 21 st Century Ireland.The Institute was founded in 1960 by a group of senior civil servants led by Dr T.K. Whitaker, who identified the need for independent and in-depth research analysis to provide a robust evidence base for policymaking in Ireland.Since then, the Institute has remained committed to independent research and its work is free of any expressed ideology or political position. The Institute publishes all research reaching the appropriate academic standard, irrespective of its findings or who funds the research.The quality of its research output is guaranteed by a rigorous peer review process. ESRI researchers are experts in their fields and are committed to producing work that meets the highest academic standards and practices.The work of the Institute is disseminated widely in books, journal articles and reports. ESRI publications are available to download, free of charge, from its website. Additionally, ESRI staff communicate research findings at regular conferences and seminars.The ESRI is a company limited by guarantee, answerable to its members and governed by a Council, comprising 14 members who represent a cross-section of ESRI members from academia, civil services, state agencies, businesses and civil society. The Institute receives an annual grant-in-aid from the Department of Public Expenditure and Reform to support the scientific and public interest elements of the Institute's activities; the grant accounted for an average of 30 per cent of the Institute's income over the lifetime of the last Research Strategy. The remaining funding comes from research programmes supported by government departments and agencies, public bodies and competitive research programmes.

Identification Of Skills Gaps Among Persons With Disabilities And Their Employment Prospects

“…The interpretation of the job satisfaction results has to be treated with caution due to the relative high proportion of missing values in some countries. For further details see Redmond et al (2021).…”

Heterogeneous Effects of a Minimum Wage Increase on Hours Worked

“…This would mean, for example, that employees in the 10c window of €9.61-€9.71 in 2016 would be categorised as being in the control group for the purpose of estimating the 2016 effect, while being in the treatment group for estimating the 2017 effect. However, choosing a control group that is too close to the treatment group runs the risk of the control group being impacted by spillover effects (Stewart, 2012;Redmond et al, 2021), as well as the related risk of misallocating minimum wage workers as control group workers. Consistently applying the €10.03 cut-off helps to avoid these issues and has the advantage of being more intuitive and straightforward to estimate as the control and treatment groups remain constant over time.…”

“…It is also worth noting the potential role of labour-labour substitution. If higher paid workers are more productive than lower paid (minimum wage) workers, then firms may substitute away from the lower paid workers towards higher paid workers in response to a minimum wage increase (Fairris and Bujanda, 2008;Redmond and McGuinness, 2021). The slightly higher-paid control group may be, to a certain extent, substitutes for the treatment group, in which case a reduction in hours among the treatment group would correspond to an increase in hours among the control group.…”

“…We calculate the incidence of minimum wage employment using the LFS-EAADS dataset and compare it to two other estimates that have been calculated using different data sources. Firstly, Redmond et al (2021), calculate the incidence of minimum wage employment using EU-SILC data for Ireland, grouping together the years 2017 and 2018. They consider a person to be a minimum wage employee if they were earning on or below 105 per cent of the minimum wage.…”

“…4Redmond et al (2021) analysed 14 countries: Ireland, Portugal, Germany, Poland, Hungary, Spain, United Kingdom, Luxembourg, Estonia, France, Latvia, Greece, Netherlands and Belgium.…”