THE EFFECT OF A RAPID INCREASE IN THE MINIMUM WAGE IN THE CZECH REPUBLIC

The impact of the minimum wage on the labour market has received considerable attention in the world literature. The article builds on the original study by Pavelka (2014), which examined the impact of raising the minimum wage in the Czech Republic on the overall unemployment rate, youth unemployment rate and unemployment rate of people with the lowest level of education using data from 1998 to 2011. The results showed a statistically insignificant impact of minimum wage changes on the overall unemployment rate and the unemployment rate of those with the lowest level of education. For young people, the impact of minimum wage changes could not be demonstrated. Since 2011, there have been significant changes in the minimum wage in the Czech Republic, especially in the last 5 years. The results of the analysis carried out in this article, using the original study model and including the latest data for 2012-2019, show that the original conclusions are still valid. The changes in the minimum wage in the Czech Republic have no significant impact on the overall unemployment rate, youth unemployment rate and unemployment rate of those with the lowest level of education. These unemployment rates are influenced by other factors, with the economic cycle as the key factor.