HYPERION ECONOMIC JOURNAL

Hyperion University of Bucharest
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HYPERION ECONOMIC JOURNAL

August 2019
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Short-Term Changes in Wage Distribution after Minimum Wage Increases in Romania

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Authors:
  • Madalina Ecaterina Popescu, Affiliation: National Scientific Research Institute for Labour and Social Protection, The Bucharest University of Economic Studies, Romania.
  • Eva Militaru, Affiliation: National Scientific Research Institute for Labour and Social Protection, The Bucharest University of Economic Studies, Romania.
Pages:  63 : 71
Abstract:

In this paper we focus on identifying the short-term changes of the net wage distribution in terms of gender inequalities. The case of Romania is discussed for the year 2014, using quarterly data. The AMIGO database with observable data at individual level is used. The period chosen for investigation corresponds to a time when the minimum wage registered two successive increases. Since the minimum wage policy is generally assumed to have several implications on the national wage distribution, the analysis will investigate the short-term quarterly dynamic of the wage distribution based on both individuals’ social-demographic and economic characteristics. Our findings suggest that male employees are better represented than females in the higher wage deciles. Slight decreases among employees living in urban areas as compared to those living in rural areas were notices during 2014, as well as among the graduates of tertiary education. Moreover, a short-term decreasing tendency of the adult employed population (25-44 years) was noticed in favour of those ageing between 45-64 years, while the share of the elderly (over 65 years old) did not register any changes during the whole year 2014.

JEL classification:  J31, C81

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