Minimum wage and employment : the case of Spain
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Minimum wage policies are intended to increase the standards of living of lowwage workers and reduce income inequality. However, there are concerns that
minimum wage increases could have a negative impact on employment for several
reasons. This study examines the effects of increases in the minimum wage on the
level of employment in Spain between 2008 and 2019, considering the average wage
and checking for potential different effects on women. Our OLS estimates show that
minimum wage increases have a negative impact on employment when they are not
accompanied by a proportional increase in average wages. On the contrary, when
minimum wages increase at the same rate as average wages do, the effects on
employment prove to be positive. As for women, our OLS estimates show that, indeed,
effects are different for the female population, but, contrary to what we would have
expected, not in a negative way