Publication detail

Economic Impacts of Raising the Minimum Wage

PERNICA, M. HANUŠOVÁ, H.

Original Title

Economic Impacts of Raising the Minimum Wage

Type

abstract

Language

English

Original Abstract

Minimum wage is the minimum permissible amount of remuneration for work performed within a basic labour relationship. The impulse for minimum wage implementation was the complex social situation experienced re-peatedly by hired work force as employers used extensive competition in the labour market to minimize the wage demands of these workers. The concept of minimum wage has a long tradition in the Czech Republic. Be-tween 1991 and 2006 the minimum wage was raised several times. However, in the period immediately follow-ing the Velvet Revolution there was high inflation rate. In the years 2007–2012 minimum wage did not increase. The former governments kept it at CZK 8,000. In 2013 it was raised by CZK 500, to CZK 8,500. The current minimum wage is CZK 9,900 per month. The OECD countries derive the amount of minimum wage from the amount of average wage, which is known as Kaitz index. The ratio of minimum wage to average wage in 2015 amounted to nearly 35%. In 2016 Kaitz index is estimated to could increased to 35.9%. The Prime Minister of the Czech Republic, has defined the goal of significant minimum wage raise in the Czech Republic in compli-ance with the estimate of average wage development to the level of CZK 11,000 by 2017.

Keywords

Income tax; Kaitz index; labour costs; minimum wage; medical insurance; purchasing power standard; social security.

Authors

PERNICA, M.; HANUŠOVÁ, H.

Released

19. 5. 2016

Publisher

Brno University of Technology, Faculty Business and Management

Location

Brno

ISBN

978-80-214-5355-5

Book

Smart and Efficient Economy

Pages from

113

Pages to

113

Pages count

1

BibTex

@misc{BUT126470,
  author="Martin {Pernica} and Helena {Hanušová}",
  title="Economic Impacts of Raising the Minimum Wage",
  booktitle="Smart and Efficient Economy",
  year="2016",
  pages="113--113",
  publisher="Brno University of Technology, Faculty Business and Management",
  address="Brno",
  isbn="978-80-214-5355-5",
  note="abstract"
}