Minimum Wages in Developing Countries : Helping or Hurting Workers?
This policy note reviews the literature on the effects of minimum wages on labor markets in developing countries. The authors begin by elucidating the challenges to ascertaining these effects, especially in developing economies where a large segmen...
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/12/10158898/minimum-wages-developing-countries-helping-or-hurting-workers http://hdl.handle.net/10986/11742 |
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okr-10986-117422021-04-23T14:02:57Z Minimum Wages in Developing Countries : Helping or Hurting Workers? Terrell, Katherine Almeida, Rita K. AVERAGE WAGE COMPETITIVE MODEL DISPLACED WORKERS DISTRIBUTION OF INCOME EARNING EARNINGS EARNINGS DISTRIBUTION ECONOMIC ACTIVITIES EMPLOYMENT EMPLOYMENT EFFECT EMPLOYMENT EFFECTS EMPLOYMENT POLICY FIRING COSTS FIRM SIZE GENERAL EQUILIBRIUM HOUSEHOLD INCOMES HUMAN RESOURCES INCOME INCOME DISTRIBUTION INFORMAL SECTOR JOB SECURITY JOBS LABOR COSTS LABOR DEMAND LABOR DEMAND ELASTICITIES LABOR ECONOMICS LABOR FORCE LABOR LAW LABOR MARKET LABOR MARKET INSTITUTIONS LABOR MARKET OUTCOMES LABOR MARKETS LABOR RELATIONS LABOR SUPPLY LABOR UNIONS LABOUR LABOUR OFFICE LARGE FIRM LARGE FIRMS MARKET WAGE MINIMUM WAGE MINIMUM WAGES OCCUPATION PAID WORKERS PRESENT EVIDENCE PRIMARY EDUCATION PRIVATE SECTOR PRIVATE SECTOR EMPLOYEES PROBABILITY SAFETY SAFETY NETS SALARIED WORKER SECONDARY EDUCATION SERVANTS SOCIAL PROTECTION UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT RATE WAGE DISTRIBUTION WAGE EFFECT WAGE EFFECTS WAGE GAIN WAGE INCREASE WAGE INCREASES WAGE STRUCTURE WORK FORCE WORKERS WORTH This policy note reviews the literature on the effects of minimum wages on labor markets in developing countries. The authors begin by elucidating the challenges to ascertaining these effects, especially in developing economies where a large segment of the workforce is not covered by minimum wage legislation (uncovered sector). After summarizing the theoretical models and their predictions, the authors review the empirical evidence of the impact of minimum wage legislation on wages, employment, and unemployment in the covered and uncovered sectors of the labor market. The evidence strongly suggests that an increase in the minimum wage tends to have a positive wage effect and a small negative employment effect among workers covered by minimum wage legislation and that the effects tend to be stronger among low-wage workers. The findings are quite limited and fairly inconclusive on the indirect effects of increases in minimum wages on workers in the uncovered sectors, where the legislation either does not apply or is not complied with. 2012-08-13T15:53:41Z 2012-08-13T15:53:41Z 2008-12 http://documents.worldbank.org/curated/en/2008/12/10158898/minimum-wages-developing-countries-helping-or-hurting-workers http://hdl.handle.net/10986/11742 English World Bank Employment Policy Primer; No. 10 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AVERAGE WAGE COMPETITIVE MODEL DISPLACED WORKERS DISTRIBUTION OF INCOME EARNING EARNINGS EARNINGS DISTRIBUTION ECONOMIC ACTIVITIES EMPLOYMENT EMPLOYMENT EFFECT EMPLOYMENT EFFECTS EMPLOYMENT POLICY FIRING COSTS FIRM SIZE GENERAL EQUILIBRIUM HOUSEHOLD INCOMES HUMAN RESOURCES INCOME INCOME DISTRIBUTION INFORMAL SECTOR JOB SECURITY JOBS LABOR COSTS LABOR DEMAND LABOR DEMAND ELASTICITIES LABOR ECONOMICS LABOR FORCE LABOR LAW LABOR MARKET LABOR MARKET INSTITUTIONS LABOR MARKET OUTCOMES LABOR MARKETS LABOR RELATIONS LABOR SUPPLY LABOR UNIONS LABOUR LABOUR OFFICE LARGE FIRM LARGE FIRMS MARKET WAGE MINIMUM WAGE MINIMUM WAGES OCCUPATION PAID WORKERS PRESENT EVIDENCE PRIMARY EDUCATION PRIVATE SECTOR PRIVATE SECTOR EMPLOYEES PROBABILITY SAFETY SAFETY NETS SALARIED WORKER SECONDARY EDUCATION SERVANTS SOCIAL PROTECTION UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT RATE WAGE DISTRIBUTION WAGE EFFECT WAGE EFFECTS WAGE GAIN WAGE INCREASE WAGE INCREASES WAGE STRUCTURE WORK FORCE WORKERS WORTH |
| spellingShingle |
AVERAGE WAGE COMPETITIVE MODEL DISPLACED WORKERS DISTRIBUTION OF INCOME EARNING EARNINGS EARNINGS DISTRIBUTION ECONOMIC ACTIVITIES EMPLOYMENT EMPLOYMENT EFFECT EMPLOYMENT EFFECTS EMPLOYMENT POLICY FIRING COSTS FIRM SIZE GENERAL EQUILIBRIUM HOUSEHOLD INCOMES HUMAN RESOURCES INCOME INCOME DISTRIBUTION INFORMAL SECTOR JOB SECURITY JOBS LABOR COSTS LABOR DEMAND LABOR DEMAND ELASTICITIES LABOR ECONOMICS LABOR FORCE LABOR LAW LABOR MARKET LABOR MARKET INSTITUTIONS LABOR MARKET OUTCOMES LABOR MARKETS LABOR RELATIONS LABOR SUPPLY LABOR UNIONS LABOUR LABOUR OFFICE LARGE FIRM LARGE FIRMS MARKET WAGE MINIMUM WAGE MINIMUM WAGES OCCUPATION PAID WORKERS PRESENT EVIDENCE PRIMARY EDUCATION PRIVATE SECTOR PRIVATE SECTOR EMPLOYEES PROBABILITY SAFETY SAFETY NETS SALARIED WORKER SECONDARY EDUCATION SERVANTS SOCIAL PROTECTION UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT BENEFITS UNEMPLOYMENT RATE WAGE DISTRIBUTION WAGE EFFECT WAGE EFFECTS WAGE GAIN WAGE INCREASE WAGE INCREASES WAGE STRUCTURE WORK FORCE WORKERS WORTH Terrell, Katherine Almeida, Rita K. Minimum Wages in Developing Countries : Helping or Hurting Workers? |
| relation |
World Bank Employment Policy Primer; No. 10 |
| description |
This policy note reviews the literature
on the effects of minimum wages on labor markets in
developing countries. The authors begin by elucidating the
challenges to ascertaining these effects, especially in
developing economies where a large segment of the workforce
is not covered by minimum wage legislation (uncovered
sector). After summarizing the theoretical models and their
predictions, the authors review the empirical evidence of
the impact of minimum wage legislation on wages, employment,
and unemployment in the covered and uncovered sectors of the
labor market. The evidence strongly suggests that an
increase in the minimum wage tends to have a positive wage
effect and a small negative employment effect among workers
covered by minimum wage legislation and that the effects
tend to be stronger among low-wage workers. The findings are
quite limited and fairly inconclusive on the indirect
effects of increases in minimum wages on workers in the
uncovered sectors, where the legislation either does not
apply or is not complied with. |
| format |
Publications & Research :: Brief |
| author |
Terrell, Katherine Almeida, Rita K. |
| author_facet |
Terrell, Katherine Almeida, Rita K. |
| author_sort |
Terrell, Katherine |
| title |
Minimum Wages in Developing Countries : Helping or Hurting Workers? |
| title_short |
Minimum Wages in Developing Countries : Helping or Hurting Workers? |
| title_full |
Minimum Wages in Developing Countries : Helping or Hurting Workers? |
| title_fullStr |
Minimum Wages in Developing Countries : Helping or Hurting Workers? |
| title_full_unstemmed |
Minimum Wages in Developing Countries : Helping or Hurting Workers? |
| title_sort |
minimum wages in developing countries : helping or hurting workers? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/12/10158898/minimum-wages-developing-countries-helping-or-hurting-workers http://hdl.handle.net/10986/11742 |
| _version_ |
1764417834014736384 |