Mentioning the issue of a minimal salary is like lighting a fuse – and not only among economists. A simple textbook labour market model says that a minimal salary may lead to involuntary unemployment if it is set too high. Nevertheless, in reality, the labour supply and demand curves are not straight lines. Empirical studies about the effects of a minimal salary on unemployment do not yield clear results. In a situation where a certain sector is dominated by a single employer (a local monopsony), the negotiating terms between the employer and job applicants are unequal and a minimal salary is a response to the situation.

Do you want to have a good overview of salaries in Prague, Brno and Bratislava? Read CPL Salary Survey 2017 which is focused on the fields of Finance & Accounting / Procurement, Supply Chain & Logistics / IT / Engineering / HR & Office Administration.