%0 Report
        %A Snell, Andy
%A Almeida, Enzo
%A Martins, Pedro S.
%A Thomas, Jonathan P.
        %T Minimum Wages and Worker Retention: The Roles of Labour Concentration and Employment Protection
        %D 2026
        %8 2026 Sep
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 18914
        %U https://www.iza.org/publications/dp18914
        %X How are incumbent workers impacted by minimum wage increases? Is labour market concentration an important moderating factor? We address these questions by presenting a new model, drawing on comprehensive employer-employee matched panel data from Portugal, and considering individual mandated wage rises from both national and collectively bargained minimum wages. We find that employment protection plays a key role in these effects: workers under permanent contracts are almost completely insulated from the exit hazards associated with wage bites while workers in temporary (fixed-term) contracts are exposed to these hazards. Labour concentration can significantly reduce negative effects on temporary workers, by up to 60\%. A model of monopsonistic competition with firing costs rationalises these patterns.
        %K minimum wages
%K collective bargaining
%K temporary contracts
%K labour market power