Minimum Wages and Social Policy : Lessons from Developing Countries
This report examines how minimum wages affect the income poverty of workers, their households, and the state. It does not question whether or not the minimum wage is a good policy: instead, it focuses on the tradeoffs in setting the minimum wage le...
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| Format: | Publication |
| Language: | English en_US |
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Washington, DC: World Bank
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/01/8091515/minimum-wages-social-policy-lessons-developing-countries http://hdl.handle.net/10986/6760 |
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okr-10986-6760 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English en_US |
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AVERAGE WAGE AVERAGE WAGES BARGAINING POWER BENEFICIARIES CASH TRANSFERS CLOSED ECONOMIES COLLECTIVE BARGAINING COMPETITIVE MARKET CURRENCY DEMOGRAPHIC GROUP DEMOGRAPHIC GROUPS DISMISSED WORKERS DOMESTIC CURRENCY DOMESTIC WORKERS EARNING EARNINGS EARNINGS OF WOMEN ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC THEORY ECONOMICS EFFICIENCY WAGES EMPLOYEE EMPLOYMENT EMPLOYMENT EFFECTS EXTERNALITIES FAMILY INCOME FAMILY MEMBERS FEMALE WORKERS FINANCES FIRM SIZE FORMAL EDUCATION FORMAL SECTOR WAGE FORMAL SECTOR WAGES GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GENERAL POPULATION GINI COEFFICIENT HIGH WAGE HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD INCOME INEQUALITY HOUSEHOLD WEALTH HUMAN CAPITAL INCOME DISTRIBUTION INCOME REDISTRIBUTION INCOMES INCREASE IN INCOMES INFLATION INFORMAL SECTOR INFORMAL SECTOR WORKERS JOB EXPERIENCE JOB LOSS JOB LOSSES JOBS LABOR DEMAND LABOR FORCE LABOR INCOME LABOR LAWS LABOR LEGISLATION LABOR MARKET LABOR MARKET CONDITIONS LABOR MARKETS LABOR MINISTRIES LABOR ORGANIZATION LABOR SHORTAGE LABOR STANDARDS LABOR SUPPLY LABOR SUPPLY INCENTIVES LABOR TURNOVER LABORERS LABOUR LARGE FIRMS LATIN AMERICAN LAYOFFS LIVING STANDARDS LOW INCOMES LOW-INCOME MALE WORKERS MANUFACTURING WAGE MARITIME WORKERS MARKET ECONOMIES MARKET WAGE MARKET WAGES MAXIMUM WAGE MINIMUM WAGE MINIMUM WAGE LAW MINIMUM WAGES MONOPSONY MONOPSONY POWER MOTIVATION OCCUPATION OCCUPATIONS OLDER WORKERS PENSION PENSION ISSUE POLITICAL ECONOMY POVERTY ALLEVIATION POVERTY LINE POVERTY LINES POVERTY RATES PRICE INDEX PRIMARY EDUCATION PRIMARY SCHOOL PRODUCTIVITY PRODUCTIVITY LEVELS PUBLIC EXPENDITURES PUBLIC WORKS PURCHASING POWER REAL WAGES RENTS RESEARCH ASSISTANCE RESOURCE ALLOCATION RURAL WORKERS SAFETY SAFETY NETS SALARIED WORKER SALARIED WORKERS SALARIES SECONDARY SCHOOL SELF-EMPLOYMENT SEVERANCE SEVERANCE PAY SEVERANCE PAY SYSTEM SKILLED LABOR SOCIAL BENEFITS SOCIAL INSURANCE SOCIAL PROTECTION SOCIAL WELFARE TRADE LIBERALIZATION TRADE UNIONS TRINIDAD AND TOBAGO UNEMPLOYED UNEMPLOYED POOR UNEMPLOYMENT UNEMPLOYMENT BENEFIT UNSKILLED WORKERS VALUABLE WAGE ADJUSTMENT WAGE BILL WAGE BOARDS WAGE DETERMINATION WAGE DISTRIBUTION WAGE EARNERS WAGE EFFECTS WAGE EMPLOYMENT WAGE FLOOR WAGE GAIN WAGE GAINS WAGE GAP WAGE INCREASE WAGE INCREASES WAGE INEQUALITY WAGE LEVEL WAGE LEVELS WAGE POLICIES WAGE POLICY WAGE SECTOR WAGE SET WAGE STRUCTURE WESTERN EUROPE WORKER WORKERS WORKING POOR WORLD MARKET YOUNG PEOPLE YOUNG WORKERS YOUTH UNEMPLOYMENT |
| spellingShingle |
AVERAGE WAGE AVERAGE WAGES BARGAINING POWER BENEFICIARIES CASH TRANSFERS CLOSED ECONOMIES COLLECTIVE BARGAINING COMPETITIVE MARKET CURRENCY DEMOGRAPHIC GROUP DEMOGRAPHIC GROUPS DISMISSED WORKERS DOMESTIC CURRENCY DOMESTIC WORKERS EARNING EARNINGS EARNINGS OF WOMEN ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC THEORY ECONOMICS EFFICIENCY WAGES EMPLOYEE EMPLOYMENT EMPLOYMENT EFFECTS EXTERNALITIES FAMILY INCOME FAMILY MEMBERS FEMALE WORKERS FINANCES FIRM SIZE FORMAL EDUCATION FORMAL SECTOR WAGE FORMAL SECTOR WAGES GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GENERAL POPULATION GINI COEFFICIENT HIGH WAGE HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD INCOME INEQUALITY HOUSEHOLD WEALTH HUMAN CAPITAL INCOME DISTRIBUTION INCOME REDISTRIBUTION INCOMES INCREASE IN INCOMES INFLATION INFORMAL SECTOR INFORMAL SECTOR WORKERS JOB EXPERIENCE JOB LOSS JOB LOSSES JOBS LABOR DEMAND LABOR FORCE LABOR INCOME LABOR LAWS LABOR LEGISLATION LABOR MARKET LABOR MARKET CONDITIONS LABOR MARKETS LABOR MINISTRIES LABOR ORGANIZATION LABOR SHORTAGE LABOR STANDARDS LABOR SUPPLY LABOR SUPPLY INCENTIVES LABOR TURNOVER LABORERS LABOUR LARGE FIRMS LATIN AMERICAN LAYOFFS LIVING STANDARDS LOW INCOMES LOW-INCOME MALE WORKERS MANUFACTURING WAGE MARITIME WORKERS MARKET ECONOMIES MARKET WAGE MARKET WAGES MAXIMUM WAGE MINIMUM WAGE MINIMUM WAGE LAW MINIMUM WAGES MONOPSONY MONOPSONY POWER MOTIVATION OCCUPATION OCCUPATIONS OLDER WORKERS PENSION PENSION ISSUE POLITICAL ECONOMY POVERTY ALLEVIATION POVERTY LINE POVERTY LINES POVERTY RATES PRICE INDEX PRIMARY EDUCATION PRIMARY SCHOOL PRODUCTIVITY PRODUCTIVITY LEVELS PUBLIC EXPENDITURES PUBLIC WORKS PURCHASING POWER REAL WAGES RENTS RESEARCH ASSISTANCE RESOURCE ALLOCATION RURAL WORKERS SAFETY SAFETY NETS SALARIED WORKER SALARIED WORKERS SALARIES SECONDARY SCHOOL SELF-EMPLOYMENT SEVERANCE SEVERANCE PAY SEVERANCE PAY SYSTEM SKILLED LABOR SOCIAL BENEFITS SOCIAL INSURANCE SOCIAL PROTECTION SOCIAL WELFARE TRADE LIBERALIZATION TRADE UNIONS TRINIDAD AND TOBAGO UNEMPLOYED UNEMPLOYED POOR UNEMPLOYMENT UNEMPLOYMENT BENEFIT UNSKILLED WORKERS VALUABLE WAGE ADJUSTMENT WAGE BILL WAGE BOARDS WAGE DETERMINATION WAGE DISTRIBUTION WAGE EARNERS WAGE EFFECTS WAGE EMPLOYMENT WAGE FLOOR WAGE GAIN WAGE GAINS WAGE GAP WAGE INCREASE WAGE INCREASES WAGE INEQUALITY WAGE LEVEL WAGE LEVELS WAGE POLICIES WAGE POLICY WAGE SECTOR WAGE SET WAGE STRUCTURE WESTERN EUROPE WORKER WORKERS WORKING POOR WORLD MARKET YOUNG PEOPLE YOUNG WORKERS YOUTH UNEMPLOYMENT Cunningham, Wendy Minimum Wages and Social Policy : Lessons from Developing Countries |
| relation |
Directions in Development; Human Development |
| description |
This report examines how minimum wages
affect the income poverty of workers, their households, and
the state. It does not question whether or not the minimum
wage is a good policy: instead, it focuses on the tradeoffs
in setting the minimum wage level. It takes as a starting
point the literature on the wage and employment effects of
minimum wages in Latin America and expands the discussion in
three ways. First, the household is placed at the center of
the debate. Poverty and inequality are measured at the level
of the household, rather than at the individual level, to
allow for employment and wage trade-offs among individuals
who pool their income. Second, new research is presented on
how the minimum wage affects groups whose labor market
participation and success is considered
"vulnerable": that is, youth, women, the
low-skilled, and informal sector workers. Third, the
implications of the minimum wage on wage and social
expenditures of the government are measured. In the end, the
report argues that the minimum wage by itself is not a
sufficient tool for protecting the income of the poorest
households, and that other social protection tools are
necessary to complement it. The report has eight sections
following the introduction. Chapter 2 presents a history of
the minimum wage in LAC, the theory behind the functioning
of the minimum wage, and empirical evidence from the OECD to
lay a foundation for the Latin American experience. Chapter
3 presents an overview of the minimum wage in the Region,
including a discussion of the definition of a minimum wage,
institutional design, and who earns it. Chapter 4 focuses on
the worker; it summarizes the existing literature, presents
new evidence on the wage and employment effects of a minimum
wage, and gives special attention to "vulnerable"
labor market groups. Chapter 5 turns its attention to the
household and presents the new (and only) evidence on the
effects of the minimum wage on household poverty and
inequality in LAC. Chapter 6 considers the state and
discusses the cost of minimum wages to the government.
Chapter 7 opens the discussion to the rest of the world and
considers the lessons learned in other countries about
setting, managing, and enforcing the minimum wage. Finally,
chapter 8 concludes and presents policy considerations. |
| format |
Publications & Research :: Publication |
| author |
Cunningham, Wendy |
| author_facet |
Cunningham, Wendy |
| author_sort |
Cunningham, Wendy |
| title |
Minimum Wages and Social Policy : Lessons from Developing Countries |
| title_short |
Minimum Wages and Social Policy : Lessons from Developing Countries |
| title_full |
Minimum Wages and Social Policy : Lessons from Developing Countries |
| title_fullStr |
Minimum Wages and Social Policy : Lessons from Developing Countries |
| title_full_unstemmed |
Minimum Wages and Social Policy : Lessons from Developing Countries |
| title_sort |
minimum wages and social policy : lessons from developing countries |
| publisher |
Washington, DC: World Bank |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2007/01/8091515/minimum-wages-social-policy-lessons-developing-countries http://hdl.handle.net/10986/6760 |
| _version_ |
1764398426852687872 |
| spelling |
okr-10986-67602021-04-23T14:02:26Z Minimum Wages and Social Policy : Lessons from Developing Countries Cunningham, Wendy AVERAGE WAGE AVERAGE WAGES BARGAINING POWER BENEFICIARIES CASH TRANSFERS CLOSED ECONOMIES COLLECTIVE BARGAINING COMPETITIVE MARKET CURRENCY DEMOGRAPHIC GROUP DEMOGRAPHIC GROUPS DISMISSED WORKERS DOMESTIC CURRENCY DOMESTIC WORKERS EARNING EARNINGS EARNINGS OF WOMEN ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC THEORY ECONOMICS EFFICIENCY WAGES EMPLOYEE EMPLOYMENT EMPLOYMENT EFFECTS EXTERNALITIES FAMILY INCOME FAMILY MEMBERS FEMALE WORKERS FINANCES FIRM SIZE FORMAL EDUCATION FORMAL SECTOR WAGE FORMAL SECTOR WAGES GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODELS GENERAL POPULATION GINI COEFFICIENT HIGH WAGE HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD INCOME INEQUALITY HOUSEHOLD WEALTH HUMAN CAPITAL INCOME DISTRIBUTION INCOME REDISTRIBUTION INCOMES INCREASE IN INCOMES INFLATION INFORMAL SECTOR INFORMAL SECTOR WORKERS JOB EXPERIENCE JOB LOSS JOB LOSSES JOBS LABOR DEMAND LABOR FORCE LABOR INCOME LABOR LAWS LABOR LEGISLATION LABOR MARKET LABOR MARKET CONDITIONS LABOR MARKETS LABOR MINISTRIES LABOR ORGANIZATION LABOR SHORTAGE LABOR STANDARDS LABOR SUPPLY LABOR SUPPLY INCENTIVES LABOR TURNOVER LABORERS LABOUR LARGE FIRMS LATIN AMERICAN LAYOFFS LIVING STANDARDS LOW INCOMES LOW-INCOME MALE WORKERS MANUFACTURING WAGE MARITIME WORKERS MARKET ECONOMIES MARKET WAGE MARKET WAGES MAXIMUM WAGE MINIMUM WAGE MINIMUM WAGE LAW MINIMUM WAGES MONOPSONY MONOPSONY POWER MOTIVATION OCCUPATION OCCUPATIONS OLDER WORKERS PENSION PENSION ISSUE POLITICAL ECONOMY POVERTY ALLEVIATION POVERTY LINE POVERTY LINES POVERTY RATES PRICE INDEX PRIMARY EDUCATION PRIMARY SCHOOL PRODUCTIVITY PRODUCTIVITY LEVELS PUBLIC EXPENDITURES PUBLIC WORKS PURCHASING POWER REAL WAGES RENTS RESEARCH ASSISTANCE RESOURCE ALLOCATION RURAL WORKERS SAFETY SAFETY NETS SALARIED WORKER SALARIED WORKERS SALARIES SECONDARY SCHOOL SELF-EMPLOYMENT SEVERANCE SEVERANCE PAY SEVERANCE PAY SYSTEM SKILLED LABOR SOCIAL BENEFITS SOCIAL INSURANCE SOCIAL PROTECTION SOCIAL WELFARE TRADE LIBERALIZATION TRADE UNIONS TRINIDAD AND TOBAGO UNEMPLOYED UNEMPLOYED POOR UNEMPLOYMENT UNEMPLOYMENT BENEFIT UNSKILLED WORKERS VALUABLE WAGE ADJUSTMENT WAGE BILL WAGE BOARDS WAGE DETERMINATION WAGE DISTRIBUTION WAGE EARNERS WAGE EFFECTS WAGE EMPLOYMENT WAGE FLOOR WAGE GAIN WAGE GAINS WAGE GAP WAGE INCREASE WAGE INCREASES WAGE INEQUALITY WAGE LEVEL WAGE LEVELS WAGE POLICIES WAGE POLICY WAGE SECTOR WAGE SET WAGE STRUCTURE WESTERN EUROPE WORKER WORKERS WORKING POOR WORLD MARKET YOUNG PEOPLE YOUNG WORKERS YOUTH UNEMPLOYMENT This report examines how minimum wages affect the income poverty of workers, their households, and the state. It does not question whether or not the minimum wage is a good policy: instead, it focuses on the tradeoffs in setting the minimum wage level. It takes as a starting point the literature on the wage and employment effects of minimum wages in Latin America and expands the discussion in three ways. First, the household is placed at the center of the debate. Poverty and inequality are measured at the level of the household, rather than at the individual level, to allow for employment and wage trade-offs among individuals who pool their income. Second, new research is presented on how the minimum wage affects groups whose labor market participation and success is considered "vulnerable": that is, youth, women, the low-skilled, and informal sector workers. Third, the implications of the minimum wage on wage and social expenditures of the government are measured. In the end, the report argues that the minimum wage by itself is not a sufficient tool for protecting the income of the poorest households, and that other social protection tools are necessary to complement it. The report has eight sections following the introduction. Chapter 2 presents a history of the minimum wage in LAC, the theory behind the functioning of the minimum wage, and empirical evidence from the OECD to lay a foundation for the Latin American experience. Chapter 3 presents an overview of the minimum wage in the Region, including a discussion of the definition of a minimum wage, institutional design, and who earns it. Chapter 4 focuses on the worker; it summarizes the existing literature, presents new evidence on the wage and employment effects of a minimum wage, and gives special attention to "vulnerable" labor market groups. Chapter 5 turns its attention to the household and presents the new (and only) evidence on the effects of the minimum wage on household poverty and inequality in LAC. Chapter 6 considers the state and discusses the cost of minimum wages to the government. Chapter 7 opens the discussion to the rest of the world and considers the lessons learned in other countries about setting, managing, and enforcing the minimum wage. Finally, chapter 8 concludes and presents policy considerations. 2012-05-31T18:04:14Z 2012-05-31T18:04:14Z 2007 http://documents.worldbank.org/curated/en/2007/01/8091515/minimum-wages-social-policy-lessons-developing-countries 0-8213-7011-1 http://hdl.handle.net/10986/6760 English en_US Directions in Development; Human Development CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Publication Publications & Research :: Publication |