From: How do firms adjust to rises in the minimum wage? Survey evidence from Central and Eastern Europe
Variables | (1) | (2) | (3) |
---|---|---|---|
Lay off | Increase prices | Reduce non-lab costs | |
Share of MW employees at the firm, dummies (base: no MW employees) | |||
1–19% | 0.110*** | 0.182*** | 0.198*** |
(0.012) | (0.014) | (0.014) | |
20–39% | 0.142*** | 0.269*** | 0.289*** |
(0.014) | (0.017) | (0.017) | |
40–59% | 0.137*** | 0.286*** | 0.338*** |
(0.016) | (0.020) | (0.020) | |
60–79% | 0.169*** | 0.246*** | 0.342*** |
(0.016) | (0.020) | (0.021) | |
80–100% | 0.181*** | 0.284*** | 0.300*** |
(0.014) | (0.018) | (0.018) | |
Foreign ownership | − 0.031*** | − 0.076*** | − 0.069*** |
(0.011) | (0.014) | (0.014) | |
Presence of collective agreement | 0.026** | 0.045*** | 0.058*** |
(0.011) | (0.015) | (0.014) | |
Demand level (base: strong decrease) | |||
- Moderate decrease | − 0.021 | 0.027 | − 0.014 |
(0.015) | (0.022) | (0.021) | |
- Unchanged | − 0.074*** | − 0.033 | − 0.116*** |
(0.016) | (0.022) | (0.022) | |
- Moderate increase | − 0.095*** | 0.002 | − 0.090*** |
(0.016) | (0.023) | (0.022) | |
- Strong increase | − 0.170*** | − 0.030 | − 0.151*** |
(0.029) | (0.033) | (0.034) | |
Access to external finance (base: strong decrease) | |||
- Moderate decrease | − 0.032* | 0.059** | 0.022 |
(0.019) | (0.028) | (0.027) | |
- Unchanged | − 0.090*** | − 0.026 | − 0.071*** |
(0.018) | (0.026) | (0.025) | |
- Moderate increase | − 0.066*** | 0.026 | − 0.041 |
(0.022) | (0.030) | (0.029) | |
- Strong increase | 0.008 | − 0.003 | − 0.047 |
(0.037) | (0.050) | (0.051) | |
Sectoral dummies (base: manufacturing) | |||
Electricity, gas, water | − 0.073 | − 0.233*** | − 0.198*** |
(0.060) | (0.080) | (0.067) | |
Construction | 0.008 | − 0.023 | − 0.009 |
(0.014) | (0.019) | (0.019) | |
Trade | − 0.024** | − 0.045*** | − 0.004 |
(0.012) | (0.015) | (0.015) | |
Business services | − 0.031*** | − 0.052*** | − 0.037*** |
(0.011) | (0.014) | (0.014) | |
Financial intermediation | − 0.009 | − 0.197*** | − 0.045 |
(0.038) | (0.048) | (0.041) | |
Arts | − 0.061* | 0.050 | − 0.014 |
(0.036) | (0.052) | (0.073) | |
Firm size dummies (base < 20 employees) | |||
20–49 employees | 0.009 | − 0.016 | − 0.005 |
(0.014) | (0.018) | (0.017) | |
50–199 employees | 0.007 | − 0.024 | 0.001 |
(0.014) | (0.018) | (0.018) | |
200+ employees | 0.018 | − 0.025 | 0.014 |
(0.016) | (0.021) | (0.021) | |
Country dummies (base: Poland) | |||
Latvia | − 0.016 | 0.011 | − 0.050* |
(0.022) | (0.029) | (0.028) | |
Lithuania | − 0.177*** | − 0.155*** | − 0.155*** |
(0.026) | (0.027) | (0.026) | |
Estonia | − 0.097*** | − 0.093*** | − 0.197*** |
(0.025) | (0.029) | (0.029) | |
Hungary | − 0.055*** | 0.053** | − 0.087*** |
(0.015) | (0.021) | (0.020) | |
Bulgaria | 0.064*** | − 0.046 | − 0.411*** |
(0.020) | (0.029) | (0.033) | |
Slovenia | − 0.182*** | − 0.319*** | − 0.036 |
(0.024) | (0.031) | (0.027) | |
Romania | 0.032* | 0.121*** | 0.087*** |
(0.017) | (0.023) | (0.022) | |
Observations | 7010 | 7010 | 7010 |