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Minimum wage : theory, policies and economic consequences in the Czech Republic
Fialová, Kamila ; Erbenová, Michaela (advisor)
Minimum wage is a highly controversial instrument of labour market policies. Economic theorists have not reached a broad consensus regarding its consequences so far. The same situation applies to empirical research. Nevertheless, minimum wage is used in many developed countries and its utilization is recommended by different international organizations Advocates of minimum wage seek arguments mainly in decreasing poverty of low income individuals, reducing income disparities, motivation of low productive workers and making work pay. However noble these goals might be, minimum wage would not be an effective tool to promote them as it might increase only incomes of those individuals who work. Moreover, introducing and increasing minimum wage might represent a large burden for employers who might decide to fire workers, whose productivity would not reach the minimum wage. To the extent in which these negative consequences would occur, potential benefits for working poor would be limited. The thesis summarises the results of various economic concepts of minimum wage, empirical studies of its consequences and international trends in approaching of this issue. Consecutively, it presents an analysis of the minimum wage development in the Czech Republic since its introduction in 1991 and of the impact of...
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