abstract: 'This paper evaluates the worker-level effects of a historically large

  and permanent increase in the minimum wage in Lithuania. Our

  identification strategy leverages variation in workers'' exposure to the

  new minimum wage, and exploits the fact that there has been no increase

  in the minimum wage in previous years, to account for heterogeneous

  labor market prospects of low-wage workers relative to high-wage

  workers. Using detailed administrative records to track workers before

  and after the policy change, we show that the minimum wage hike

  significantly increased the earnings of low-wage workers. This direct

  effect was amplified by wage spillovers reaching the median of the

  pre-policy income distribution. Overall, we find no negative effects on

  the employment prospects of low-wage workers. However, we provide

  suggestive evidence that young workers, highly exposed municipalities,

  and tradable sectors may be more negatively affected. In contrast, labor

  market concentration or the presence of envelope wages appear to be

  associated with lower job losses. Taken together, our findings imply an

  employment elasticity with respect to the minimum wage of -0.021, and an

  own-wage elasticity of -0.033, suggesting that wage gains dominated

  employment losses.'
affiliation: 'Garcia-Louzao, J (Corresponding Author), Bank Lithuania, Totoriu G 4,
  LT-01121 Vilnius, Lithuania.

  Garcia-Louzao, Jose; Tarasonis, Linas, Bank Lithuania, Totoriu G 4, LT-01121 Vilnius,
  Lithuania.

  Garcia-Louzao, Jose; Tarasonis, Linas, Vilnius Univ, Vilnius, Lithuania.'
author: Garcia-Louzao, Jose and Tarasonis, Linas
author-email: jgarcialouzao@lb.lt
author_list:
- family: Garcia-Louzao
  given: Jose
- family: Tarasonis
  given: Linas
da: '2023-09-28'
doi: 10.1016/j.jce.2022.12.002
earlyaccessdate: JUN 2023
eissn: 1095-7227
files: []
issn: 0147-5967
journal: JOURNAL OF COMPARATIVE ECONOMICS
keywords: Minimum wage; Employment; Wages
keywords-plus: YOUTH EMPLOYMENT; INEQUALITY; FIRMS
language: English
month: JUN
number: '2'
number-of-cited-references: '78'
orcid-numbers: Garcia-Louzao, Jose/0000-0002-2211-1401
pages: 592-609
papis_id: 7d4db23516f24efdee4302f4b848a1a1
ref: Garcialouzao2023wageemployment
times-cited: '0'
title: 'Wage and Employment Impact of Minimum Wage: Evidence from Lithuania ✩'
type: article
unique-id: WOS:001019095200001
usage-count-last-180-days: '8'
usage-count-since-2013: '8'
volume: '51'
web-of-science-categories: Economics
year: '2023'