A First glance at the minimum wage incidence in Lithuania using social security data

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Collection:
Mokslo publikacijos / Scientific publications
Document Type:
Žurnalų straipsniai / Journal articles
Language:
Anglų kalba / English
Title:
A First glance at the minimum wage incidence in Lithuania using social security data
Authors:
In the Journal:
Ekonomika, 2021, 100 (1), 31-53
Subject Category:
LT
Darbo apmokėjimas / Remuneration of work.
Summary / Abstract:

ENThis document explores the incidence of the minimum wage in Lithuania. The descriptive analysis exploits high-frequency data on monthly labor income coming from Social Security records between July 2013 and July 2020 to characterize (i) the evolution of the monthly minimum wage, (ii) the percentage of workers who earn the minimum wage, (iii) the bite of the minimum wage in the wage distribution, and (iv) the heterogeneity of the findings with respect to gender and age. The evidence shows that the minimum wage was raised 7 times with an average (real) increase of 7.3% and, on average, less than 10% of the workers earn at most the minimum wage but low-pay incidence is around 20%. In terms of the impact of the wage distribution, the minimum wage relative to the average wage in the economy fluctuates between 45 and 50 percent. Females and young workers exhibit a larger low-pay incidence and minimum wage bite.

DOI:
10.15388/Ekon.2021.1.2
ISSN:
1392-1258; 2424-6166
Subject:
Ekonomika / Economics
Permalink:
https://www.lituanistika.lt/content/94528
Updated:
2026-02-25 13:52:23
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