Abstract:

The article presents the concept, functions and economic effects of the minimum wage. It is a widely practiced and controversial labor market institution. This is because of the effects it can lead to. First of all, the purpose of the minimum wage is to stabilize the economy by ensuring an adequate income for the worker and his family. In terms of the concept of human capital, this goal can be defined as ensuring the conditions for the reproduction of human capital. However, there is a risk that the implementation of the income function may have a negative impact on the labor market. According to the classical economic trend, setting the price in isolation from the market realities may lead to negative effects on the labor market. The aim of the article is to analyze the scope of fulfillment of the minimum wage income function in Poland in the period 2003-2021. Research has shown that in Poland the scope of the minimum wage income function is gradually increasing. An additional goal was to identify the impact of the minimum wage on the labor market. The conducted analysis of the literature does not confirm this fact, however, research indicates that the minimum wage may cause a noticeable reduction in employment among the weakest employee groups. The realization of the work goal required calculating the dynamics of compliance of the applicable minimum wage with the minimum wage resulting from the human capital measurement model and the relationship between the applicable minimum wage and the cost of living. The research on the impact of minimum wages on the labor market was also analyzed.