Minimum wage and youth unemployment in local labor markets in Poland

A revised and updated version of this working paper is published in the journal: ROCZNIKI KOLEGIUM ANALIZ EKONOMICZNYCH, KOLEGIUM ANALIZ EKONOMICZNYCHThe aim of the paper is to analyze the impact of minimum wage on youth unemployment (less than 25 years old) in local (NUTS4) labor markets in Poland. The results show that minimum wage in Poland significantly affects youth unemployment in local labor markets in Poland. The higher is the minimum to average wage ratio on local labor market, the higher is the share of youth unemployed in total unemployment. The fact that youths are the group which is disproportionally affected by minimum wage increases is confirmed by low and/or insignificant value of the parameter by minimum to average wage ratio for other, older groups of workers