The Impact of Minimum Wages on Employment in a Low-Income Country : A Quasi-natural Experiment in Indonesia

The extensive literature on the employment impact of minimum wages has focused heavily on industrialized nations and very little on the developing world, despite the importance of minimum wages in many low-income countries. One such country, Indonesia, was the setting for an unusual quasi-natural ex...

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Main Authors:	Alatas, Vivi, Cameron, Lisa A.
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Wages, Compensation, and Labor Costs: Public Policy J380 Economic Development: Human Resources Human Development Income Distribution Migration O150 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Urban, Rural, and Regional Economics: Regional Migration Regional Labor Markets Population Neighborhood Characteristics R230
Online Access:	http://hdl.handle.net/10986/5503

id	okr-10986-5503
recordtype	oai_dc
spelling	okr-10986-55032021-04-23T14:02:22Z The Impact of Minimum Wages on Employment in a Low-Income Country : A Quasi-natural Experiment in Indonesia Alatas, Vivi Cameron, Lisa A. Wages, Compensation, and Labor Costs: Public Policy J380 Economic Development: Human Resources Human Development Income Distribution Migration O150 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Urban, Rural, and Regional Economics: Regional Migration Regional Labor Markets Population Neighborhood Characteristics R230 The extensive literature on the employment impact of minimum wages has focused heavily on industrialized nations and very little on the developing world, despite the importance of minimum wages in many low-income countries. One such country, Indonesia, was the setting for an unusual quasi-natural experiment: not only did minimum wages in Indonesia increase sharply between 1990 and 1996, but the resultant increment in average wages varied markedly across different areas in Greater Jakarta. The authors use household-level labor market data to determine the extent of compliance with the legislation, then estimate the employment impact in the clothing, textiles, footwear, and leather industries based on a census of all large and medium-sized establishments. The evidence suggests that there was no negative employment impact for large establishments, either foreign or domestic, but that workers in smaller, domestic establishments may have suffered job losses as a result of minimum wage increases. 2012-03-30T07:33:08Z 2012-03-30T07:33:08Z 2008 Journal Article Industrial and Labor Relations Review 00197939 http://hdl.handle.net/10986/5503 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Indonesia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Wages, Compensation, and Labor Costs: Public Policy J380 Economic Development: Human Resources Human Development Income Distribution Migration O150 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Urban, Rural, and Regional Economics: Regional Migration Regional Labor Markets Population Neighborhood Characteristics R230
spellingShingle	Wages, Compensation, and Labor Costs: Public Policy J380 Economic Development: Human Resources Human Development Income Distribution Migration O150 Economic Development: Regional, Urban, and Rural Analyses Transportation O180 Urban, Rural, and Regional Economics: Regional Migration Regional Labor Markets Population Neighborhood Characteristics R230 Alatas, Vivi Cameron, Lisa A. The Impact of Minimum Wages on Employment in a Low-Income Country : A Quasi-natural Experiment in Indonesia
geographic_facet	Indonesia
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	The extensive literature on the employment impact of minimum wages has focused heavily on industrialized nations and very little on the developing world, despite the importance of minimum wages in many low-income countries. One such country, Indonesia, was the setting for an unusual quasi-natural experiment: not only did minimum wages in Indonesia increase sharply between 1990 and 1996, but the resultant increment in average wages varied markedly across different areas in Greater Jakarta. The authors use household-level labor market data to determine the extent of compliance with the legislation, then estimate the employment impact in the clothing, textiles, footwear, and leather industries based on a census of all large and medium-sized establishments. The evidence suggests that there was no negative employment impact for large establishments, either foreign or domestic, but that workers in smaller, domestic establishments may have suffered job losses as a result of minimum wage increases.
format	Journal Article
author	Alatas, Vivi Cameron, Lisa A.
author_facet	Alatas, Vivi Cameron, Lisa A.
author_sort	Alatas, Vivi
title	The Impact of Minimum Wages on Employment in a Low-Income Country : A Quasi-natural Experiment in Indonesia
title_short	The Impact of Minimum Wages on Employment in a Low-Income Country : A Quasi-natural Experiment in Indonesia
title_full	The Impact of Minimum Wages on Employment in a Low-Income Country : A Quasi-natural Experiment in Indonesia
title_fullStr	The Impact of Minimum Wages on Employment in a Low-Income Country : A Quasi-natural Experiment in Indonesia
title_full_unstemmed	The Impact of Minimum Wages on Employment in a Low-Income Country : A Quasi-natural Experiment in Indonesia
title_sort	impact of minimum wages on employment in a low-income country : a quasi-natural experiment in indonesia
publishDate	2012
url	http://hdl.handle.net/10986/5503
_version_	1764395285531852800

The Impact of Minimum Wages on Employment in a Low-Income Country : A Quasi-natural Experiment in Indonesia

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