The Impact of Minimum Wage Hikes on Employment and Wages in Cambodia

Using an event-study framework, this paper examines the impact of four minimum wage hikes between 2008 and 2015 on the Cambodian labor market. The analysis finds that, except for immediate adjustments around the time of the hikes, the minimum wage...

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Main Author: Shrestha, Maheshwor
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/147271556803838695/The-Impact-of-Minimum-Wage-Hikes-on-Employment-and-Wages-in-Cambodia
http://hdl.handle.net/10986/31604
id okr-10986-31604
recordtype oai_dc
spelling okr-10986-316042022-09-19T12:16:33Z The Impact of Minimum Wage Hikes on Employment and Wages in Cambodia Shrestha, Maheshwor MINIMUM WAGE DUAL LABOR MARKET EMPLOYMENT LABOR MARKET Using an event-study framework, this paper examines the impact of four minimum wage hikes between 2008 and 2015 on the Cambodian labor market. The analysis finds that, except for immediate adjustments around the time of the hikes, the minimum wage hikes did not affect participation rates in the affected sector -- garments and footwear -- or the unaffected sectors. However, the minimum wage hikes increased wages modestly (3 percent) for workers in the affected sectors and modestly decreased wages (1.5 percent) for workers in the unaffected sectors. The gains for the affected sectors are slightly larger at higher quantiles than at lower quantiles. This is suggestive of a change in compensation structure within the affected firms as a result of the hikes. 2019-05-02T20:36:24Z 2019-05-02T20:36:24Z 2019-05 Working Paper http://documents.worldbank.org/curated/en/147271556803838695/The-Impact-of-Minimum-Wage-Hikes-on-Employment-and-Wages-in-Cambodia http://hdl.handle.net/10986/31604 English Policy Research Working Paper;No. 8839 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 East Asia and Pacific Cambodia
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
DUAL LABOR MARKET
EMPLOYMENT
LABOR MARKET
spellingShingle MINIMUM WAGE
DUAL LABOR MARKET
EMPLOYMENT
LABOR MARKET
Shrestha, Maheshwor
The Impact of Minimum Wage Hikes on Employment and Wages in Cambodia
geographic_facet East Asia and Pacific
Cambodia
relation Policy Research Working Paper;No. 8839
description Using an event-study framework, this paper examines the impact of four minimum wage hikes between 2008 and 2015 on the Cambodian labor market. The analysis finds that, except for immediate adjustments around the time of the hikes, the minimum wage hikes did not affect participation rates in the affected sector -- garments and footwear -- or the unaffected sectors. However, the minimum wage hikes increased wages modestly (3 percent) for workers in the affected sectors and modestly decreased wages (1.5 percent) for workers in the unaffected sectors. The gains for the affected sectors are slightly larger at higher quantiles than at lower quantiles. This is suggestive of a change in compensation structure within the affected firms as a result of the hikes.
format Working Paper
author Shrestha, Maheshwor
author_facet Shrestha, Maheshwor
author_sort Shrestha, Maheshwor
title The Impact of Minimum Wage Hikes on Employment and Wages in Cambodia
title_short The Impact of Minimum Wage Hikes on Employment and Wages in Cambodia
title_full The Impact of Minimum Wage Hikes on Employment and Wages in Cambodia
title_fullStr The Impact of Minimum Wage Hikes on Employment and Wages in Cambodia
title_full_unstemmed The Impact of Minimum Wage Hikes on Employment and Wages in Cambodia
title_sort impact of minimum wage hikes on employment and wages in cambodia
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/147271556803838695/The-Impact-of-Minimum-Wage-Hikes-on-Employment-and-Wages-in-Cambodia
http://hdl.handle.net/10986/31604
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