The effects of minimum wage on a labour market with high temporary employment

We use propensity score matching and a difference-in-differences estimator to analyse the impact of minimum wage hikes on the Polish labour market in 2002-2013. We find an increase in wages and better working time standards among workers who retained their jobs, but also more separations and larger flows from permanent to temporary jobs. After 2008, the number of separations due to the minimum wage hikes reached 1% of the total employment of people aged 15-54. Women with temporary jobs suffered most.