Minimum Wages and Labor Supply in an Emerging Market : The Case of Mauritius
This paper investigates the effect of multiple minimum wages, known as remuneration orders, on employment and working hours in Mauritius. Using data between 2004 and 2014, the analysis indicates that a 10 percent increase in the minimum wages bring...
| Main Authors: | , , , , |
|---|---|
| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/108361545148341118/Minimum-Wages-and-Labor-Supply-in-an-Emerging-Market-The-Case-of-Mauritius http://hdl.handle.net/10986/31083 |
| Summary: | This paper investigates the effect of
multiple minimum wages, known as remuneration orders, on
employment and working hours in Mauritius. Using data
between 2004 and 2014, the analysis indicates that a 10
percent increase in the minimum wages brings about a
slightly positive effect on employment in the covered
sector, with an estimated employment elasticity of 0.113,
which is within the range of elasticities found in previous
studies of employment effects of minimum wages in low- and
middle-income countries. The positive employment effect of
minimum wages is also associated with a 2.3 percent increase
in average working hours for men but a 1.8 percent decline
in average working hours for women in the covered sector. In
the uncovered sector, the significant positive effect along
the intensive margin, estimated at 4.2 percent, is driven by
changes in labor supply among men. |
|---|