It is telling that the public almost unquestioningly believes that the minimum wage helps low-income people in particular. But as the prominent Czech economist Robert Holman writes in his textbook on microeconomics, “If economists agree on anything, it is that legislating a minimum wage increases unemployment.”
The Liberalni Institute calculated that with an average wage of CZK 40,086, the total cost per employee is 63% higher, i.e. CZK 65,376. This is the second year of the Cost of an Employee project, which the Liberalni Institut publishes in cooperation with the Slovak think tank INESS and the German FNF Foundation. The aim of the project is to calculate the total cost of a job for different types of employees.
The term “wage” and its size are very important in national discussions about labor markets, taxes, and insurance payments, but also as a part of international comparisons for investors deciding to build a factory or place investments in a specific country.
