The effect of minimum wages on employment in emerging economies: a survey and meta-analysis

Abstract

Using both qualitative and quantitative (meta-analysis) methods, this paper reviews the growing evidence on the impact of minimum wages on employment in 14 major emerging economies (Argentina, Brazil, Chile, China, Colombia, India, Indonesia, Mexico, Poland, the Philippines, the Russian Federation, South Africa, Thailand and Turkey). Overall, minimum wages are found to have only a minimal impact on employment, and there is evidence of reporting bias towards statistically significant negative results. More vulnerable groups (e.g. youth and the low-skilled) are marginally more negatively affected, and there is some indication that higher minimum wages lead to more informal employment.