{
  "title": "Minimum Wage and Employment: Sectoral and Regional Perspectives",
  "publication": "IMF Working Papers, November 14, 2025",
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  "summary": "Most European countries have a single national minimum wage. An increase in minimum wage implies shocks of different magnitudes to sectors and subnational regions.",
  "sections": [
    {
      "heading": "Overview and scope",
      "content": "- Authors: Yan Chen, Jiaxiong Yao\n- Publication date: November 14, 2025\n- Series: Working Paper No. 2025/241\n- Pages: 44\n- Volume: 2025\n- Issue: 241\n- DOI: https://doi.org/10.5089/9798229030779.001\n- Stock No: WPIEA2025241\n- ISBN: 9798229030779\n- ISSN: 1018-5941\n- Context: Most European countries have a single national minimum wage. An increase in minimum wage implies shocks of different magnitudes to sectors and subnational regions."
    },
    {
      "heading": "Methods and identification",
      "content": "- Empirical approach: Uses sectoral and regional variations of minimum wage to average wage ratios in European countries.\n- Estimation techniques: Local projections and generalized random forests.\n- Objective: Estimate dynamic and heterogeneous treatment effects of minimum wage changes on employment."
    },
    {
      "heading": "Key findings",
      "content": "- Short-term effects:\n  - The average employment effects of minimum wage increases tend to be negligible in the short term.\n- Medium- to long-term effects:\n  - The average employment effects of minimum wage increases tend to be negative in the medium to long term.\n- Heterogeneity of effects:\n  - Employment effects are heterogeneous in gender.\n  - Employment effects are heterogeneous in age.\n  - Employment effects are heterogeneous in the size of the minimum wage increase.\n  - Employment effects are heterogeneous in the minimum wage to average wage ratio.\n- Threshold effect at the sectoral level:\n  - Minimum wage increases appear to have a threshold effect on employment at the sectoral level.\n  - The employment effects become negative when the minimum wage is above 35 percent of the sectoral average wage."
    },
    {
      "heading": "Subject classification and keywords",
      "content": "- Subject: Employment, Employment rate, Labor, Minimum wages, Wage adjustments, Wages\n- Keywords: effects of minimum wage, employment, employment effect, Employment rate, IMF working papers, Minimum wage, minimum wage change, minimum wage increase, Minimum wages, treatment effect, Wage adjustments, Wages\n\nSource: IMF Working Papers — \"Minimum Wage and Employment: Sectoral and Regional Perspectives\" by Yan Chen and Jiaxiong Yao, November 14, 2025, Working Paper No. 2025/241.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2025/11/14/minimum-wage-and-employment-sectoral-and-regional-perspectives-571866"
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    "Authors: Yan Chen, Jiaxiong Yao",
    "Published: November 14, 2025",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798229030779.001",
    "Authors: Yan Chen, Jiaxiong Yao",
    "Publication date: November 14, 2025",
    "Series: Working Paper No. 2025/241",
    "Pages: 44",
    "Volume: 2025",
    "Issue: 241",
    "DOI: https://doi.org/10.5089/9798229030779.001",
    "Stock No: WPIEA2025241",
    "ISBN: 9798229030779",
    "ISSN: 1018-5941",
    "Context: Most European countries have a single national minimum wage. An increase in minimum wage implies shocks of different magnitudes to sectors and subnational regions.",
    "Empirical approach: Uses sectoral and regional variations of minimum wage to average wage ratios in European countries.",
    "Estimation techniques: Local projections and generalized random forests.",
    "Objective: Estimate dynamic and heterogeneous treatment effects of minimum wage changes on employment.",
    "Short-term effects:",
    "Medium- to long-term effects:",
    "Heterogeneity of effects:",
    "Threshold effect at the sectoral level:",
    "Subject: Employment, Employment rate, Labor, Minimum wages, Wage adjustments, Wages",
    "Keywords: effects of minimum wage, employment, employment effect, Employment rate, IMF working papers, Minimum wage, minimum wage change, minimum wage increase, Minimum wages, treatment effect, Wage adjustments, Wages",
    "**Working Paper**"
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