Minimum wage effects on employment, productivity and living standards in Croatia (MinPlaca)
Commissioned by: Ministry of Labour and Pension System
Project duration: December 11, 2015 – December 28, 2015
Project manager: Danijel Nestić, PhD
Collaborators: Zdenko Babić, PhD (Faculty of Law of the University of Zagreb); Sanja Blažević, PhD (Faculty of Economics and Tourism, Juraj Dobrila University of Pula); Petra Šprajaček; Nataša Novaković
Project goals:
Overview of minimum wage effects in Croatia since 2000 and suggestions for improvements of the minimum wage system.
Activities: Data analysis of minimum wage trends, employment, productivity and the living standards. Interviews with trade union representatives at company level and leaders of trade union associations, as well as employers and the employers' organisation leaders.
Methodology: Quantitative part of the research was based on official statistical data. It assessed the minimum wage effects, estimated missing figures on the distribution of wages and the proportion of minimum wage workers and prepared the profile of minimum wage workers. It also presented comparisons of key features of minimum wage systems in the EU. Qualitative part of the research consisted of a number of interviews with social partners' representatives. Two groups of interviews were conducted: i) interviews with trade unions' and employer organization's leaders; ii) interviews with trade union representatives at the company level and directors of several companies from low-wage sectors. The interviews enabled better insight into practical experience with the minimum wage. Both parts of the research provided a solid ground for recommendations on changes in the minimum wage system in Croatia.