TY - RPRT AU - Laporsek, Suzana AU - Orazem, Peter F. AU - Vodopivec, Matija AU - Vodopivec, Milan TI - Long-Term Responses to Large Minimum Wage Shocks: Sub-Minimum and Super-Minimum Workers in Slovenia PY - 2019/Jan/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 12123 UR - https://www.iza.org/publications/dp12123 AB - 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. KW - minimum wage KW - employment KW - unemployment KW - hours KW - earnings KW - Slovenia ER -