cite: Militaru2019
author: Militaru, E., Popescu, M. E., Cristescu, A., & Vasilescu, M. D. 
year: 2019
title: "Assessing minimum wage policy implications upon income inequalities: The case of Romania"
publisher: Sustainability
uri: https://doi.org/10.3390/su11092542
pubtype: article
discipline: economics

country: Romania
period: 2013-2014
maxlength: 12
targeting: explicit
group: low-income workers
data: EU Survey on Income and Living Conditions (EU-SILC)

design: simulation
method: microsimulation (EUROMOD); counterfactual analysis
sample: 7500
unit: household
representativeness: national
causal: 0 # 0 correlation / 1 causal

theory:
limitations: dependent on simulation order; can not account for tax evasion, behavioural changes; over-representation of employees in sample; remaining unobservables on inequality outcomes
observation:
  - intervention: minimum wage
    institutional: 1
    structural: 1
    agency: 0
    inequality: income; gender
    type: 0 # 0 vertical / 1 horizontal
    indicator: 1 # 0 absolute / 1 relative
    measures: Gini coeff
    findings: small decrease in wage inequality; larger impact for women
    channels: concentration of workers at minimum wage level matters, women make up larger part; increase in number of wage earners in total number of employees
    direction: -1 # -1 neg / 0 none / 1 pos
    significance: # 0 nsg / 1 msg / 2 sg

notes: does not see minimum wage increase as most efficient income inequality reduction policy per se, but sees efficiency possibly enhanced by accompanying skills development programs
annotation: |
  An analysis of the effects of minimum wage increases on income inequality in Romania.
  It finds that, generally, minimum wage increases correlate with small wage inequality decreases, but carry a larger impact for women.
  The channels for the policies effects are two-fold in that there is an inequality decrease as the number of wage earners in total number of employees increases, 
  as well as the concentration of workers at the minimum level mattering --- the probable channel for a larger impact on women since they make up larger parts of low-income and minimum wage households in Romania.
  Limitations to the study are some remaining unobservables for the final inequality outcomes (such as other wages or incomes), the sample over-representing employees and not being able to account for any tax evasion or behavioural changes.