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...

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Main Authors: Asmal, Zaakhir, Bhorat, Haroon, Kanbur, Ravi, Ranzani, Marco, Paci, Pierella
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
id okr-10986-31083
recordtype oai_dc
spelling okr-10986-310832021-06-08T14:42:45Z Minimum Wages and Labor Supply in an Emerging Market : The Case of Mauritius Asmal, Zaakhir Bhorat, Haroon Kanbur, Ravi Ranzani, Marco Paci, Pierella MINIMUM WAGE POVERTY EQUITY LABOR SUPPLY EMERGING MARKET ECONOMIES COST OF LIVING EMPLOYMENT TERMS OF EMPLOYMENT WORKING HOURS GENDER LABOR FORCE PARTICIPATION 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. 2018-12-28T17:01:50Z 2018-12-28T17:01:50Z 2018-12 Working Paper 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 English Policy Research Working Paper;No. 8681 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Mauritius
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic MINIMUM WAGE
POVERTY
EQUITY
LABOR SUPPLY
EMERGING MARKET ECONOMIES
COST OF LIVING
EMPLOYMENT
TERMS OF EMPLOYMENT
WORKING HOURS
GENDER
LABOR FORCE PARTICIPATION
spellingShingle MINIMUM WAGE
POVERTY
EQUITY
LABOR SUPPLY
EMERGING MARKET ECONOMIES
COST OF LIVING
EMPLOYMENT
TERMS OF EMPLOYMENT
WORKING HOURS
GENDER
LABOR FORCE PARTICIPATION
Asmal, Zaakhir
Bhorat, Haroon
Kanbur, Ravi
Ranzani, Marco
Paci, Pierella
Minimum Wages and Labor Supply in an Emerging Market : The Case of Mauritius
geographic_facet Africa
Mauritius
relation Policy Research Working Paper;No. 8681
description 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.
format Working Paper
author Asmal, Zaakhir
Bhorat, Haroon
Kanbur, Ravi
Ranzani, Marco
Paci, Pierella
author_facet Asmal, Zaakhir
Bhorat, Haroon
Kanbur, Ravi
Ranzani, Marco
Paci, Pierella
author_sort Asmal, Zaakhir
title Minimum Wages and Labor Supply in an Emerging Market : The Case of Mauritius
title_short Minimum Wages and Labor Supply in an Emerging Market : The Case of Mauritius
title_full Minimum Wages and Labor Supply in an Emerging Market : The Case of Mauritius
title_fullStr Minimum Wages and Labor Supply in an Emerging Market : The Case of Mauritius
title_full_unstemmed Minimum Wages and Labor Supply in an Emerging Market : The Case of Mauritius
title_sort minimum wages and labor supply in an emerging market : the case of mauritius
publisher World Bank, Washington, DC
publishDate 2018
url 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
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