From: How do firms adjust to rises in the minimum wage? Survey evidence from Central and Eastern Europe
MW rise | BG | EE | HU | LT | LV | PL | RO | SI‡ | CEE8 |
---|---|---|---|---|---|---|---|---|---|
Firms with minimum wage employees (before the MW rise) | |||||||||
We had to lay people off | 25.2 | 9.7 | 19.2 | 9.1 | 22.7 | 38.5 | 35.7 | 7.1 | 29.6 |
We could hire fewer people | – | 12.2 | 47.3 | 28.2 | 29.5 | 46.4 | 54.7 | 20.7 | 45.8 |
We had to raise product prices | 35.0 | 39.2 | 57.0 | 36.6 | 52.5 | 52.3 | 67.8 | 15.0 | 52.7 |
We had to reduce non-labour costs | 8.1 | 27.8 | 56.1 | 49.7 | 55.6 | 66.6 | 77.9 | 63.2 | 59.1 |
We had to raise the wages of other employees | 29.2 | 32.9 | – | 30.0 | 49.9 | 43.3 | 29.8 | 18.8 | 40.5 |
We increased productivity | 21.5 | 25.0 | 59.4 | 55.7 | 45.6 | 68.7 | – | – | 61.6 |
Percentage of firms that regard at least one channel as relevant | 100.0 | 66.7 | 100.0 | 66.4 | 70.6 | 86.6 | 100.0 | 100.0 | 93.2 |
Number of observations | 317 | 169 | 1540 | 264 | 283 | 444 | 1223 | 493 | 4650 |
Firms without minimum wage employees (before the MW rise) | |||||||||
We had to lay people off | 13.9 | 3.3 | 11.7 | 0.0 | 6.4 | 7.2 | 14.2 | – | 7.8 |
We could hire fewer people | – | 3.2 | 20.6 | 3.6 | 12.0 | 14.2 | 29.7 | – | 14.5 |
We had to raise product prices | 41.3 | 15.3 | 30.4 | 10.8 | 20.3 | 21.0 | 36.0 | – | 22.9 |
We had to reduce non-labour costs | 5.6 | 13.6 | 23.9 | 13.9 | 24.0 | 26.1 | 45.7 | – | 23.8 |
We had to raise the wages of other employees | 50.6 | 10.9 | – | 22.3 | 25.8 | 27.5 | 12.3 | – | 27.2 |
We increased productivity | 35.8 | 12.4 | 28.5 | 28.7 | 26.3 | 28.1 | – | – | 28.1 |
Percentage of firms that regard at least one channel as relevant | 100.0 | 26.3 | 100.0 | 39.2 | 37.1 | 41.3 | 100.0 | 100.0 | 80.4 |
Number of observations | 211 | 329 | 479 | 248 | 241 | 453 | 815 | – | 2776 |