Minimum wage and financially distressed firms: Another one bites the dust
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Outros Autores: | , , , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10316/96945 https://doi.org/10.1016/j.labeco.2021.102088 |
Resumo: | Since late 2014, Portuguese Governments adopted ambitious minimum wage policies. Using linked employer-employee data, we provide an econometric evaluation of the impact of those policies. Our estimates suggest that minimum wage increases reduced employment growth and profitability, in particular for financially distressed firms. We also conclude that minimum wage increases had a positive impact on firms’ exit, again amplified for financially distressed firms. According to these results, minimum wage policies may have had a supply side effect by accelerating the exit of low profitability and low productivity firms and, thus, contributing to improve aggregate productivity through a cleansing effect. |
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Minimum wage and financially distressed firms: Another one bites the dustFinancially distressed firmsJEL classification J38JEL classification L25Minimum wagesProductivitySince late 2014, Portuguese Governments adopted ambitious minimum wage policies. Using linked employer-employee data, we provide an econometric evaluation of the impact of those policies. Our estimates suggest that minimum wage increases reduced employment growth and profitability, in particular for financially distressed firms. We also conclude that minimum wage increases had a positive impact on firms’ exit, again amplified for financially distressed firms. According to these results, minimum wage policies may have had a supply side effect by accelerating the exit of low profitability and low productivity firms and, thus, contributing to improve aggregate productivity through a cleansing effect.Elsevier2022info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlehttp://hdl.handle.net/10316/96945http://hdl.handle.net/10316/96945https://doi.org/10.1016/j.labeco.2021.102088eng09275371https://www.sciencedirect.com/science/article/pii/S0927537121001238Alexandre, F.Bação, P.Cerejeira, J.Costa, H.Portela, M.info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2022-05-25T06:35:57Zoai:estudogeral.uc.pt:10316/96945Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T21:15:06.102546Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Minimum wage and financially distressed firms: Another one bites the dust |
title |
Minimum wage and financially distressed firms: Another one bites the dust |
spellingShingle |
Minimum wage and financially distressed firms: Another one bites the dust Alexandre, F. Financially distressed firms JEL classification J38 JEL classification L25 Minimum wages Productivity |
title_short |
Minimum wage and financially distressed firms: Another one bites the dust |
title_full |
Minimum wage and financially distressed firms: Another one bites the dust |
title_fullStr |
Minimum wage and financially distressed firms: Another one bites the dust |
title_full_unstemmed |
Minimum wage and financially distressed firms: Another one bites the dust |
title_sort |
Minimum wage and financially distressed firms: Another one bites the dust |
author |
Alexandre, F. |
author_facet |
Alexandre, F. Bação, P. Cerejeira, J. Costa, H. Portela, M. |
author_role |
author |
author2 |
Bação, P. Cerejeira, J. Costa, H. Portela, M. |
author2_role |
author author author author |
dc.contributor.author.fl_str_mv |
Alexandre, F. Bação, P. Cerejeira, J. Costa, H. Portela, M. |
dc.subject.por.fl_str_mv |
Financially distressed firms JEL classification J38 JEL classification L25 Minimum wages Productivity |
topic |
Financially distressed firms JEL classification J38 JEL classification L25 Minimum wages Productivity |
description |
Since late 2014, Portuguese Governments adopted ambitious minimum wage policies. Using linked employer-employee data, we provide an econometric evaluation of the impact of those policies. Our estimates suggest that minimum wage increases reduced employment growth and profitability, in particular for financially distressed firms. We also conclude that minimum wage increases had a positive impact on firms’ exit, again amplified for financially distressed firms. According to these results, minimum wage policies may have had a supply side effect by accelerating the exit of low profitability and low productivity firms and, thus, contributing to improve aggregate productivity through a cleansing effect. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022 |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10316/96945 http://hdl.handle.net/10316/96945 https://doi.org/10.1016/j.labeco.2021.102088 |
url |
http://hdl.handle.net/10316/96945 https://doi.org/10.1016/j.labeco.2021.102088 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
09275371 https://www.sciencedirect.com/science/article/pii/S0927537121001238 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.publisher.none.fl_str_mv |
Elsevier |
publisher.none.fl_str_mv |
Elsevier |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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