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.
Details
-
Author
Alatas, Vivi Cameron, Lisa
-
Document Date
2003/03/31
-
Document Type
Policy Research Working Paper
-
Report Number
WPS2985
-
Volume No
1
-
Total Volume(s)
1
-
Country
-
Region
-
Disclosure Date
2010/07/01
-
Doc Name
The impact of minimum wages on employment in a low income country : an evaluation using the difference-differences approach
-
Keywords
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
- See More
Downloads
COMPLETE REPORT
Official version of document (may contain signatures, etc)
- Official PDF
- TXT*
- Total Downloads** :
- Download Stats
-
*The text version is uncorrected OCR text and is included solely to benefit users with slow connectivity.
Citation
Alatas, Vivi Cameron, Lisa
The impact of minimum wages on employment in a low income country : an evaluation using the difference-differences approach (English). Policy, Research working paper series ; no. WPS 2985 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/688131468772482489/The-impact-of-minimum-wages-on-employment-in-a-low-income-country-an-evaluation-using-the-difference-differences-approach