@TechReport{iza:izadps:dp12123, author={Laporsek, Suzana and Orazem, Peter F. and Vodopivec, Matija and Vodopivec, Milan}, title={Long-Term Responses to Large Minimum Wage Shocks: Sub-Minimum and Super-Minimum Workers in Slovenia}, year={2019}, month={Jan}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={12123}, url={https://www.iza.org/publications/dp12123}, abstract={This study examines long-term effects of a minimum wage increase using an innovative identification strategy based on categorising workers according to their predicted marginal revenue products. It finds that the increase had a large and persistent disemployment effects on low-paid workers and that it triggered substitution toward more productive workers. As a consequence, the sub-minimum workers as a group lost average earnings, hours and employment compared to other workers. The adverse employment effect occurred both through a higher probability of transition from employment to non-employment and through a decreased probability of transition from non-employment to employment.}, keywords={minimum wage;employment;unemployment;hours;earnings;Slovenia}, }