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|The effect of minimum wage on employment in Malta
|Labor demand -- Malta
Labor supply -- Malta
Labor costs -- Malta
Wages -- Malta
|University of Malta
|Vella, M., & Briguglio, L. (2014). The effect of minimum wage on employment in Malta. University of Malta, 1-26
|This study analyses the relationship between the effect of changes in the national minimum wage on labour demand, measured by aggregate hired employment, using data pertaining to Malta for 1975-2011. The findings indicate that employment is influenced by changes in GDP and by the average wage rates, and that there is a positive relationship between the average wage rate and the minimum wage rate, with a lag on one year. This implies that employment is negatively related to the minimum wage, via the latter‟s effect on the average wage rate. The study concludes that, the estimated elasticities of labour demand with respect to the minimum wage rate are -0.2 in the short run and -0.5 in the long run, everything else remaining constant.
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|Scholarly Works - InsSSI
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