%0 Report %A Laporsek, Suzana %A Orazem, Peter F. %A Vodopivec, Matija %A Vodopivec, Milan %T Long-Term Responses to Large Minimum Wage Shocks: Sub-Minimum and Super-Minimum Workers in Slovenia %D 2019 %8 2019 Jan %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 12123 %U https://www.iza.org/publications/dp12123 %X 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. %K minimum wage %K employment %K unemployment %K hours %K earnings %K Slovenia