Achieving an adequate minimum wage in Czechia with a little help from the EU directive

ABSTRACT

This study examines how acting on different minimum wage criteria could promote an adequate minimum wage in Czechia and in turn realize the objectives of a new EU directive: decent working and living conditions, social cohesion, and upward convergence. The study discusses the link between the directive’s criteria, its objectives and minimum wages. It quantifies the criteria and examines their role in Czechia. The results suggest using combination of distribution-based indicators such as Kaitz indices and basket-based criteria (living-wage approach) in assessing decent working conditions. The findings highlight the potential impact of the directive and the importance of considering different criteria to promote fair wages.

KEYWORDS:

• Adequate minimum wages
• wage convergence
• minimum wage determinants
• living wage

Acknowledgments

This work was supported by the Faculty of Business Administration of Prague University of Economics and Business under Grant No. 39/2021.

Disclosure statements

No potential conflict of interest was reported by the author(s).

Notes

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Additional information

Notes on contributors

Jan Bittner

Jan Bittner is a research assistant and PhD candidate in the Faculty of Business Administration at the Prague University of Economics and Business, currently engaged in the Department of Managerial Economics. His research concentrates on wages and industrial relations. He is a co-author of the living wage calculation for the Czech Republic.