Minimum wage workers in the private sector in Poland: regional perspective

Abstract

The aim of the paper is to analyse regional diversification of minimum wage workers in the private sector in Poland and identify regions more vulnerable to minimum wage increases. Firstly, we examine the regional differences in the share of minimum wage workers. Secondly, we look at the structure of minimum wage earners. Finally, we use empirical approach analogous to Nestić et al. (2018) to identify low-wage sections and low-wage regions. We use individual data from the Structure of Earnings Survey in Poland. The research period covers 2008-2016. Six Polish regions are identified as the low-wage ones: five economically underdeveloped provinces of Eastern Poland and one region located centrally. These regions are characterised not only by high percentage of young people working for the minimum wage, but also high share of prime age and elderly minimum wage workers. High share of minimum wage earners is not only among low-qualified workers, but also among those with secondary education. These are employed in labour intensive, low-wage sections of the economy. What is particularly interesting is the fact that the results are fairly stable over time. To the best of our knowledge this is the first study of such kind not only for Poland but also for other countries.