Employment measure in developing countries via minimum wage and poverty new fuzzy approach

Abstract

New models of employment show that there are some cases in which a minimum wage can have positive effects on employment and social welfare. The effects depend ultimately on the prevailing market wage and the frictions in the market. Card and Krueger (Am. Econ. Rev. 90(5), 1397–1420 2000) for example, argue that raising minimum wages sometimes increases employment. Based on this finding, we propose in this paper, a new approach to measure an employment via a fuzzy poverty measure and a relative minimum wage. An application using individual well-being data from Tunisia households in 2010 is presented.