Minimum Wages in Austria: Estimation of Employment Functions

Christian Ragacs

Publication: Working/Discussion PaperWU Working Paper

Abstract

Minimum wages in Austria are bargaining results between labour unions and entrepreneurs. This paper analyses the empirical effects of minimum wages ("Kollektivvertragslöhne") on employment. "Employment functions", based on a
"neo-classical" partial analytic framework, are estimated. The empirical analysis that
is done for aggregated Austrian industry and specific branches at first sight seems to support the standard theoretical thesis. In addition, problems caused by the used
method, which may occur in similar studies too, are shown. They give rise to the possibility that models of this kind are misspecified.
Original languageEnglish
Publication statusPublished - 1993

Publication series

NameDepartment of Economics Working Paper Series
No.20

WU Working Paper Series

  • Department of Economics Working Paper Series

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