{"type":"script","project_desc":{"authoring_entity":[{"name":"Monica Robayo-Abril","email":"mrobayo@worldbank.org","affiliation":"World Bank"},{"name":"Madalina Zamfir","email":"madalina.zamfir@mfinante.gov.ro","affiliation":"Romanian Ministry of Finance"},{"name":"Marcin Wro\u0144ski","email":"mwronski@worldbank.org","affiliation":"World Bank and SGH Warsaw School of Economics"}],"output":[{"type":"Working paper","description":"Policy Research Working Paper (PRWP) WPS10934","title":"Simulating Aggregate and Distributional Effects of Minimum Wage Increases in Romania: Evidence from Survey and Administrative Tax Data","uri":"http:\/\/documents.worldbank.org\/curated\/en\/099324309302427521\/IDU1ae89ff0f167421480e1957212ba169bf9f3e","doi":"https:\/\/doi.org\/10.1596\/1813-9450-10934"}],"datasets":[{"name":"Statistics on Income and Living Conditions (SILC) of the European Union","access_type":"The EU-SILC dataset can be requested from Eurostat under a data usage agreement. For more information on how to get access to the EU-LFS, see the data URL.","uri":"https:\/\/ec.europa.eu\/eurostat\/web\/microdata\/european-union-statistics-on-income-and-living-conditions","note":"EU statistics on income and living conditions (EU-SILC) for Romania. Data file: \"ROU_SILC_2021.dta\"."},{"note":"Tax administrative data is strictly confidential and provided by the Romanian Ministry of Finance, as a result of a strong collaboration. There is no standard procedure to request the data, as the data is not made publicly available. Data files: \"Tax_2020_01.dta\", \"Tax_2020_03.dta\", \"Tax_2020_04.dta\", \"Tax_2020_05.dta\", \"Tax_2020_07.dta\", \"Tax_2020_08.dta\", \"Tax_2020_09.dta\", \"Tax_2020_10.dta\", \"Tax_2020_11.dta\", \"Tax_2020_12.dta\", \"Tax_2021_01.dta\", \"Tax_2021_02.dta\", \"Tax_2021_03.dta\", \"Tax_2021_04.dta\", \"Tax_2021_05.dta\", \"Tax_2021_06.dta\", \"Tax_2021_07.dta\", \"Tax_2021_08.dta\", \"Tax_2021_09.dta\", \"Tax_2021_10.dta\", \"Tax_2021_11.dta\", \"Tax_2021_12.dta\".","access_type":"Data is confidential and not included in the reproducibility package. More information about this is in the README file.","name":"Romania Tax Authority Data"}],"software":[{"name":"Stata","version":"15.1 SE"}],"scripts":[{"file_name":"RR_ROU_2024_99-v03","zip_package":"RR_ROU_2024_99-v03.zip","title":"Reproducibility package (code) for Simulating Aggregate and Distributional Effects of Minimum Wage Increases in Romania: Evidence from Survey and Administrative Tax Data","date":"2024-05","notes":"Computational reproducibility verified by Development Impact (DIME) Analytics team, World Bank.","instructions":"See README in reproducibility package.","dependencies":"Stata: inequal7, pshare (from SSC). Dependency files for Stata are included in the folder \"Code\/ado\"."}],"title_statement":{"idno":"RR_ROU_2024_99","title":"Reproducibility package for Simulating Aggregate and Distributional Effects of Minimum Wage Increases in Romania: Evidence from Survey and Administrative Tax Data"},"production_date":"2024-05","abstract":"Minimum wages are an essential component of a country's social protection system, aiming to protect vulnerable workers and reduce poverty and wage inequality. Yet, there are risks associated with poor minimum wage design. Higher minimum wages may result in higher earnings for affected workers but fewer job opportunities for others, including the demographic groups they are intended to help, such as those with very low wages and skills and youth, so ex-ante evaluation of potential employment, wage, and distributional impacts is needed. Over the last decade, Romania experienced significant real growth in the minimum wage and a rising minimum-to-median wage ratio. However, when looking at minimum living standards, our analysis shows that the statutory minimum wage is higher than the minimum living wage needed to cover a consumption food basket but not enough to include non-food components. Our microsimulation results using administrative tax data show that tying minimum wage to inflation or the minimum living wage could lead to a slight short-term wage increase for some workers but may cause job loss in the long run, especially for younger workers. The minimum wage increase could have varying impacts across regions and sectors, with the accommodation and food services sector and those living in the Suceava NUTS3 region having the highest proportion of affected employees. Moreover, male employees tend to be more affected than their female counterparts.","geographic_units":[{"name":"Romania","code":"ROU"}],"keywords":[{"name":"labor market"},{"name":"minimum wage"},{"name":"administrative tax data"},{"name":"EU-SILC"},{"name":"Romania"}],"topics":[{"id":"E24","vocabulary":"Journal of Economic Literature (JEL) ","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","parent_id":"E2","name":"Employment \u2022 Unemployment \u2022 Wages \u2022 Intergenerational Income Distribution \u2022 Aggregate Human Capital \u2022 Aggregate Labor Productivity "},{"id":"J31","vocabulary":"Journal of Economic Literature (JEL) ","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","parent_id":"J3","name":"Wage Level and Structure \u2022 Wage Differentials"},{"id":"J38","vocabulary":"Journal of Economic Literature (JEL) ","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","parent_id":"J3","name":"Wages, Compensation, and Labor Costs - Public Policy"},{"id":"J46","vocabulary":"Journal of Economic Literature (JEL) ","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","parent_id":"J4","name":"Informal Labor Markets"},{"id":"J48","vocabulary":"Journal of Economic Literature (JEL) ","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","parent_id":"J4","name":"Particular Labor Markets - Public Policy"}],"data_statement":"All datasets used are restricted and not included in the reproducibility package.","repository_uri":[{"name":"Reproducible Research Repository (World Bank)","uri":"https:\/\/reproducibility.worldbank.org"}],"technology_environment":"Paper exhibits were produced on a computer with the following specifications:\n- Operative System: Windows 10 Education\n- Processor: Intel(R) Core(TM) i7-10750H CPU @ 2.60GHz   2.59 GHz\n- Memory available: 64 GB\n- Software version: Stata 15.1 SE","technology_requirements":"Runtime: 6 hours","reproduction_instructions":"The reproduction of this package was conducted remotely due to data confidentiality. The authors executed the code and generated intermediate data, code outputs, and logs, which were provided to the reviewers for verification of the results against the paper exhibits. No data is included in the reproducibility package due to access restrictions. Replicators interested in reproducing the results must obtain the datasets directly from their sources (see Data section). However, currently, there are no agreements to obtain the Romanian tax authority data utilized in this package, making it challenging for replicators to access this particular portion of the data. Without these data, not all the exhibits will be reproducible. For more information on how to reproduce specific exhibits, replicators are encouraged to consult the reproducibility report and code included in this reproducibility package. For questions, replicators should contact Monica Robayo-Abril at mrobayo@worldbank.org.","disclaimer":"The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development\/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.","license":[{"name":"Modified BSD3 ","uri":"https:\/\/opensource.org\/license\/bsd-3-clause\/"}],"contacts":[{"name":"Monica Robayo-Abril","affiliation":"World Bank","email":"mrobayo@worldbank.org"},{"name":"Reproducibility WBG","email":"reproducibility@worldbank.org","affiliation":"World Bank"}]},"tags":[{"tag":"DOI"}],"schematype":"script"}