The optimum setting of minimum wage in the Czech Republic

This study deals with the theory and practice of economic instrument termed minimum wage. This study defines in detail the concept of minimum wage, explains its features, effects and side effects. It also addresses the problem of setting the minimum wage and analyses the negative effects on the labour market caused by this tool as well as the reasons for its introduction. The question of the minimum wage is current mainly due to the forthcoming elections to the Chamber of Deputies of the Czech Republic, while the rate of the minimum wage is a part of the election platform of the strongest political parties. The aim of the study is to evaluate whether the minimum wage is an effective tool in the current economy of the Czech Republic, if it should be implemented, or what should be the optimal level of minimum wage rates in the Czech Republic. Furthermore, the development of minimum wage rates in the separate Czech Republic appears in this work as well as the prediction for the nearest future and comparisons of minimum wage rates within the EU and OECD. Finally, recommendations are set out and the question whether the minimum wage in the Czech Republic is properly configured is answered