The Impact of Minimum Wages on Employment in a Low-Income Country : An Evaluation Using the Difference-in-Differences Approach
Unlike the well-developed literature on the employment impact of the minimum wage in industrial nations, very little is known about minimum wage effects in low income countries. Minimum wages increased sharply in Indonesia between 1990 and 1996 and...
| Main Authors: | , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/03/2166850/impact-minimum-wages-employment-low-income-country-evaluation-using-difference-differences-approach http://hdl.handle.net/10986/18313 |
| id |
okr-10986-18313 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-183132021-04-23T14:03:42Z The Impact of Minimum Wages on Employment in a Low-Income Country : An Evaluation Using the Difference-in-Differences Approach Alatas, Vivi Cameron, Lisa MINIMUM WAGES MINIMUM WAGE LAWS EMPLOYMENT POLICIES LOW INCOME LOW INCOME DEVELOPING COUNTRIES CLOTHING INDUSTRY TEXTILE INDUSTRY SHOE INDUSTRY LEATHER INDUSTRY HOUSEHOLD DATA LABOR MARKET CHARACTERISTICS COMPLIANCE FIRM SIZE INFORMAL SECTOR AGED CITIES COST OF LIVING DEVELOPED COUNTRIES DEVELOPING COUNTRY CONTEXT ECONOMIC CONDITIONS EMPLOYMENT EXCHANGE RATE EXPLOITATION FACTORIES HOUSEHOLD SERVANTS INCOME INFLATION INTERNATIONAL STANDARDS LABOR COSTS LABOR FORCE LAWS LEGISLATION MANAGERS METROPOLITAN AREAS MINIMUM WAGE MINIMUM WAGES OIL PRODUCTION TECHNOLOGY PRODUCTIVITY RENTAL PROPERTY SANCTIONS THEORETICAL MODELS UNEMPLOYMENT WORKERS INFORMAL SECTOR AGED Unlike the well-developed literature on the employment impact of the minimum wage in industrial nations, very little is known about minimum wage effects in low income countries. Minimum wages increased sharply in Indonesia between 1990 and 1996 and by more in some provinces than in others. Following Card and Krueger (1994) the authors exploit the large geographic variation in the rate of increase and compare changes in employment in the clothing, textile, footwear, and leather industries on either side of the Jakarta-West Java border. They use household level labor market data to establish compliance with the legislation. They obtain matched difference-in-difference estimates of the employment impact using a census of all large and medium-size firms in the clothing, textile, leather, and footwear industries. The authors find some evidence of a negative employment impact for small, domestic firms but no employment impact for large firms, foreign or domestic. 2014-05-14T20:27:06Z 2014-05-14T20:27:06Z 2003-03 http://documents.worldbank.org/curated/en/2003/03/2166850/impact-minimum-wages-employment-low-income-country-evaluation-using-difference-differences-approach http://hdl.handle.net/10986/18313 English en_US Policy Research Working Paper;No. 2985 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific Indonesia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
MINIMUM WAGES MINIMUM WAGE LAWS EMPLOYMENT POLICIES LOW INCOME LOW INCOME DEVELOPING COUNTRIES CLOTHING INDUSTRY TEXTILE INDUSTRY SHOE INDUSTRY LEATHER INDUSTRY HOUSEHOLD DATA LABOR MARKET CHARACTERISTICS COMPLIANCE FIRM SIZE INFORMAL SECTOR AGED CITIES COST OF LIVING DEVELOPED COUNTRIES DEVELOPING COUNTRY CONTEXT ECONOMIC CONDITIONS EMPLOYMENT EXCHANGE RATE EXPLOITATION FACTORIES HOUSEHOLD SERVANTS INCOME INFLATION INTERNATIONAL STANDARDS LABOR COSTS LABOR FORCE LAWS LEGISLATION MANAGERS METROPOLITAN AREAS MINIMUM WAGE MINIMUM WAGES OIL PRODUCTION TECHNOLOGY PRODUCTIVITY RENTAL PROPERTY SANCTIONS THEORETICAL MODELS UNEMPLOYMENT WORKERS INFORMAL SECTOR AGED |
| spellingShingle |
MINIMUM WAGES MINIMUM WAGE LAWS EMPLOYMENT POLICIES LOW INCOME LOW INCOME DEVELOPING COUNTRIES CLOTHING INDUSTRY TEXTILE INDUSTRY SHOE INDUSTRY LEATHER INDUSTRY HOUSEHOLD DATA LABOR MARKET CHARACTERISTICS COMPLIANCE FIRM SIZE INFORMAL SECTOR AGED CITIES COST OF LIVING DEVELOPED COUNTRIES DEVELOPING COUNTRY CONTEXT ECONOMIC CONDITIONS EMPLOYMENT EXCHANGE RATE EXPLOITATION FACTORIES HOUSEHOLD SERVANTS INCOME INFLATION INTERNATIONAL STANDARDS LABOR COSTS LABOR FORCE LAWS LEGISLATION MANAGERS METROPOLITAN AREAS MINIMUM WAGE MINIMUM WAGES OIL PRODUCTION TECHNOLOGY PRODUCTIVITY RENTAL PROPERTY SANCTIONS THEORETICAL MODELS UNEMPLOYMENT WORKERS INFORMAL SECTOR AGED Alatas, Vivi Cameron, Lisa The Impact of Minimum Wages on Employment in a Low-Income Country : An Evaluation Using the Difference-in-Differences Approach |
| geographic_facet |
East Asia and Pacific Indonesia |
| relation |
Policy Research Working Paper;No. 2985 |
| description |
Unlike the well-developed literature on
the employment impact of the minimum wage in industrial
nations, very little is known about minimum wage effects in
low income countries. Minimum wages increased sharply in
Indonesia between 1990 and 1996 and by more in some
provinces than in others. Following Card and Krueger (1994)
the authors exploit the large geographic variation in the
rate of increase and compare changes in employment in the
clothing, textile, footwear, and leather industries on
either side of the Jakarta-West Java border. They use
household level labor market data to establish compliance
with the legislation. They obtain matched
difference-in-difference estimates of the employment impact
using a census of all large and medium-size firms in the
clothing, textile, leather, and footwear industries. The
authors find some evidence of a negative employment impact
for small, domestic firms but no employment impact for large
firms, foreign or domestic. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Alatas, Vivi Cameron, Lisa |
| author_facet |
Alatas, Vivi Cameron, Lisa |
| author_sort |
Alatas, Vivi |
| title |
The Impact of Minimum Wages on Employment in a Low-Income Country : An Evaluation Using the Difference-in-Differences Approach |
| title_short |
The Impact of Minimum Wages on Employment in a Low-Income Country : An Evaluation Using the Difference-in-Differences Approach |
| title_full |
The Impact of Minimum Wages on Employment in a Low-Income Country : An Evaluation Using the Difference-in-Differences Approach |
| title_fullStr |
The Impact of Minimum Wages on Employment in a Low-Income Country : An Evaluation Using the Difference-in-Differences Approach |
| title_full_unstemmed |
The Impact of Minimum Wages on Employment in a Low-Income Country : An Evaluation Using the Difference-in-Differences Approach |
| title_sort |
impact of minimum wages on employment in a low-income country : an evaluation using the difference-in-differences approach |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2003/03/2166850/impact-minimum-wages-employment-low-income-country-evaluation-using-difference-differences-approach http://hdl.handle.net/10986/18313 |
| _version_ |
1764439311351021568 |