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Minimum Wage Earners and Poverty in Croatia

Danijel Nestić orcid id ; Ekonomski institut, Zagreb
Sanja Blažević Burić orcid id ; Fakultet ekonomije i turizma

Puni tekst: hrvatski PDF 611 Kb

str. 235-262

preuzimanja: 1.142



This paper describes the key socio-economic characteristics of minimum wage earners in Croatia, estimates their material position and household poverty, and presents the results of a simulation of a minimum wage increase on poverty and inequality. The findings are based on the Labour Force Survey (LFS) and Survey of Income and Living Conditions (SILC) data. The LFS-based estimate shows a gradual increase in the number of minimum wage workers between 2007 and 2014, particularly among young people and highly educated workers, as well as a reduction in the proportion of women. Sectors with the highest incidence of minimum wages include: manufacturing industry; retail and wholesale trades; construction; accommodation and food preparation and service activities. The SILC-based estimate shows that the at-risk-of-poverty rate among minimum wage earners is lower than the rate for the Croatian population as a whole. Minimum wage earners account for slightly more than 1% of the poor. Simulation results for a minimum wage increase indicate its limited effects on poverty and income inequality.

Ključne riječi

minimum wage; minimum wage earners; poverty; Croatia

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Podaci na drugim jezicima: hrvatski

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