MINIMUM WAGE - A CRITICAL FACTOR OF EMPLOYMENT IN THE CZECH REPUBLIC

The minimum wage is sometimes considered as a specific reason of unemployment. In the Czech Republic it was established in 1990 and from that date it has made an interesting development. Of course, when there is a recession in economy and managers must enforce cost cuts, there is always naturally an opportunity in the wage costs. The minimum wage has many functions for the government, for employees and even for entrepreneurs. In this article we are going to analyze the effects of minimum wage to employment people through the horizon from 2000 to 2010 in chosen groups of employment classification. We want to answer the question if the minimal wage is the critical or irrelevant factor in employing people in the Czech Republic. Secondary we need to know what could have changed, in case of industrial wage constitution. Moreover we will calculate economic effects of employed people that are critically employed due to the minimum wage.