Employment effects of minimum wages in Europe revisited

The aim of this paper is to estimate the effect of minimum wage on employment rates taking into account potential nonlinearity. Focusing on three age groups, we find a significant nonlinear relationship between the minimum wage and employment for the young (15-24 years) and older working-age (55-64 years) groups, whereas for the prime-age workers (25-54 years) the minimum wage does not have a significant non-linear effect. Negative effect of the minimum wages on employment is stronger if the labor markets are otherwise strictly regulated and when workers are relatively unproductive

Employment effects of minimum wages in Europe revisited

The aim of this paper is to estimate the effect of minimum wage on employment rates taking into account potential nonlinearity. Focusing on three age groups, we find a significant nonlinear relationship between the minimum wage and employment for the young (15-24 years) and older working-age (55-64 years) groups, whereas for the prime-age workers (25-54 years) the minimum wage does not have a significant non-linear effect. Negative effect of the minimum wages on employment is stronger if the labor markets are otherwise strictly regulated and when workers are relatively unproductive

Employment effects of minimum wages in Europe revisited

The aim of this paper is to estimate the effect of minimum wage on employment rates taking into account potential nonlinearity. Focusing on three age groups, we find a significant nonlinear relationship between the minimum wage and employment for the young (15-24 years) and older working-age (55-64 years) groups, whereas for the prime-age workers (25-54 years) the minimum wage does not have a significant non-linear effect. Negative effect of the minimum wages on employment is stronger if the labor markets are otherwise strictly regulated and when workers are relatively unproductive

Employment effects of minimum wages in Europe revisited

The aim of this paper is to estimate the effect of minimum wage on employment rates taking into account potential nonlinearity. Focusing on three age groups, we find a significant nonlinear relationship between the minimum wage and employment for the young (15-24 years) and older working-age (55-64 years) groups, whereas for the prime-age workers (25-54 years) the minimum wage does not have a significant non-linear effect. Negative effect of the minimum wages on employment is stronger if the labor markets are otherwise strictly regulated and when workers are relatively unproductive

The Value and Risk Implications of Grid Expansion Investments

In this article, we look at a model with (independent) system operator who faces stochastic but growing transmission demand and a penalty if frequency is not balanced. In this set up, we derive an optimal grid expansion investment strategy and analyze its value and risk implications. It turns out that the firm value is strictly concave in the level of transmission demand. Firm value, however, increases with optimal investment for any level of demand. Moreover, firm risk is decreasing in the level of demand and higher when the firm has an investment option. The risk increase corresponds to the exercise of the call option and is stronger, the closer the firm approaches its exercise trigger. (author's abstract)Series: Working Papers / Research Institute for Regulatory Economic