We analyze the employment gap between Roma and non-Roma men and women in local labor markets to test the hypothesis that ethnic prejudices against a minority have a more substantial labor market impact if the proportion of small firms is high in the local economy. We rely on Hungarian data from...

The effect of minimum wages on employment has been a matter of debate for more than a decade. Apart from a few cases (Puerto Rico, Indonesia, Columbia) the empirical works analysed the aftermaths of minor increases in the minimum wage, and yielded mixed results. Hungary 2000-2002 provides a...