Effects Of Minimum Wage Research Articles

The Effects of Minimum Wage on the Employment of Temporary Employees

The Effects of Minimum Wage on the Employment of Temporary Employees

Minimum-Wage Effects on Human Capital Accumulation: Evidence from Canadian Data

Minimum-Wage Effects on Human Capital Accumulation: Evidence from Canadian Data

The Effect of Minimum Wage Increased on Employment and Total Personal Income: County-Level Estimation from Restaurant and Retail Sector

The Effect of Minimum Wage Increased on Employment and Total Personal Income: County-Level Estimation from Restaurant and Retail Sector

Effect of minimum wages on labor, welfare and economic growth: Evidence from East Java province

Effect of minimum wages on labor, welfare and economic growth: Evidence from East Java province

The introduction of a minimum wage in Germany and the effects on physical activity participation

The relationship between income and physical activity has been extensively studied. This paper utilizes the introduction of the minimum wage in Germany in 2015 as a quasi-experiment to determine the causal effect of minimum wages on the frequency of physical activity participation. Employing survey data from the German Socio-Economic Panel between 2013 and 2017, regression-adjusted difference-in-difference models combined with matching techniques are estimated. Our findings reveal a notable negative effect immediately after the minimum wage implementation on physical activity frequency. Given that the introduction of the minimum wage did not increase monthly gross income but reduced working hours, it appears that affected individuals exhibit preferences and engage in utility maximization that do not emphasize healthy behaviors. This effect is particularly pronounced among older females in white-collar occupations.

Research on the Effect of Minimum Wage on the Bargaining Power of Chinese Manufacturing

Based on the data of China's industrial enterprise database from 2003 to 2013 and the national minimum wage data at county (city) level, this paper investigates the impact of minimum wage policy on China's manufacturing bargaining power. The results show that (1) the increase of minimum wage will reduce the price markup of Chinese manufacturers and weaken the bargaining power of Chinese manufacturers. (2) Compared with the minimum wage adjustment in the lag period, the cost impact of the minimum wage in the current period is more intense in weakening the bargaining power of the manufacturing industry.

The effect of minimum wages on consumer bankruptcy

We use cross-state differences in minimum wage (MW) levels and county-level consumer bankruptcy rates from 1991–2017 to estimate the effect of changes in minimum wages on consumer bankruptcy. We find that Chapter 7 bankruptcy rates are significantly lower in counties belonging to states with higher MW compared to neighboring counties in the lower MW state: a 10% increase in MW decreases the bankruptcy rate by around 4%. Before the 2005 bankruptcy reform, this effect was almost twice as large as for the entire sample. Theoretically, we cannot sign the effect of MW on bankruptcy and credit utilization; we use a stylized consumption/saving model with default to illustrate the dependence on critical aspects of the model (costs of default, minimum wage levels, and disemployment effects) and to provide intuition on how to interpret our results.

Investigating the Effects of Minimum Wage and Non-compliance on Formal Employment: Evidence in Java Island

Investigating the Effects of Minimum Wage and Non-compliance on Formal Employment: Evidence in Java Island

The effects of minimum wages on (almost) everything? A review of recent evidence on health and related behaviors

AbstractI review and assess the evidence on minimum wage effects on health outcomes and health‐related behaviors. The evidence on physical health points in conflicting directions, leaning toward adverse effects. Research on effects on diet and obesity sometimes points to beneficial effects, whereas other evidence indicates that higher minimum wages increase smoking and drinking and reduce exercise (and possibly hygiene). In contrast, there is evidence that higher minimum wages reduce suicides, partly consistent with the evidence of positive or mixed effects on other measures of mental health/depression. Overall, policy conclusions that minimum wages improve health are unwarranted or at least premature.

Gesetzlicher Mindestlohn: Auswirkungen auf Frauen und Männer

Abstract Since its introduction, minimum wage has led to greater increases in average hourly wages and monthly earnings for women than for men. The effects of minimum wage on the hourly wages of women and men affected by the minimum wage have been similar on average. However, women are more frequently employed in the minimum wage sector than men and therefore benefit from it more often. Reductions in working hours due to the introduction of minimum wage were lower for women than for men in the short term. Minimum wage did not have a significant effect on employment for women or men and therefore contributes to reducing pay inequality by gender.

Oracle Efficient Estimation of Heterogeneous Dynamic Panel Data Models with Interactive Fixed Effects

We propose a two-step procedure to estimate a heterogeneous dynamic panel data model with interactive fixed effects. We establish the asymptotic properties of the estimators and show that the final estimator is oracle efficient. We also propose a specification test for the null hypothesis of homogeneous slopes and study the asymptotic properties of the test statistic under both local and global alternatives. Simulations demonstrate the fine performance of the estimator and test statistic. The new estimation and inference methods are applied to study the heterogeneous effects of minimum wage on employment across different counties in the United States. Our dynamic model suggests that the changes of employment range from about–1% to 1% when the minimum wage increases by 1%.

PENGARUH PENDIDIKAN, UPAH MINIMUM DAN KESEMPATAN KERJA TERHADAP PENGANGGURAN TERDIDIK DI JAWA BARAT

Unemployment is a phenomenon that occurs in all countries, including Indonesia. Educated unemployed is someone who is looking for a job or has not worked who has a high school education and above. An increase in the workforce that is not proportional to the number of jobs will increase the number of unemployed. This study aims to analyze the effect of education, minimum wages and employment opportunities on educated unemployment in West Java Province in 2018-2021. The method used is a quantitative method using panel data regression tested using the Ordinary Least Squares (OLS) method, where the test uses the Eviews 10 program tool. The results show that education has a positive and insignificant effect on educated unemployment in West Java, minimum wage has a positive and significant effect on educated unemployment in West Java, and opportunity has a positive and insignificant effect on educated unemployment in West Java.

Effects of Minimum Wage Changes on the Wage Distribution in Low-wage and High-wage Sectors

Research background: The number of research regarding employment effects of minimum wages is enormous. Another problem examined by prior studies is the impact of minimum wage increases on the wages. The evidence shows that minimum wage increases compress the wage distribution. The same literature brings conflicting evidence regarding minimum wage spill-over effects. Purpose of the article: The study analyses the effects of a minimum wage increase on the wage distribution of low- and high-wage sectors and possible spill-overs. The analysed period 2014-2018 is characterized by relatively stable economic conditions, while the minimum wage increased by 25%. Methods: We follow case study method and as example Poland, the EU country with high share of minimum wage workers. We use individual data on wages and worker characteristics from the Structure of Earnings Survey in Poland for 2014–2018. We use reweighting and decompose counterfactual wage distribution. Findings & value added: In low-wage sector, a wage increase in the left tail of the distribution is almost entirely due to the increase in the minimum wage level and spill-over effects are present throughout the distribution. In high-wage sector the role of the minimum wage growth is weaker and also the workers’ characteristics have substantial impact on wages; no spill-over effects of a minimum wage increase are observed. We demonstrate that the conflicting evidence on the effects of minimum wage changes on the wage distribution may occur because the effects differ across the low- and high-paid economic sectors. They depend on sector productivity and openness.

What's Across the Border? Re-Evaluating the Cross-Border Evidence on Minimum Wage Effects

What's Across the Border? Re-Evaluating the Cross-Border Evidence on Minimum Wage Effects

Determining the relationship between unemployment and minimum wage in Turkey

The minimum wage, which has increased more than tenfold in Turkey since 2014, has been a controversial topic for Turkish economic policy in the last few years. This controversy is due to a variety of factors including the high rate of minimum wage-bound workers and the minimum wage dropping below the hunger and poverty limits because of inflation despite rapid increase in the nominal minimum wage. The literature on the Turkish labor market, as well as the broader empirical and theoretical literature in economics, is divided about the employment effect of minimum wage. We hypothesized that the minimum wage has a positive and a Granger causal relationship with unemployment because the high rate of minimum wage bound workers suggests a minimum wage increase might introduce a lot of rigidity in the labor market. To test this hypothesis, we conducted Ordinary Least Squares (OLS) regression and Granger causality tests using unemployment, minimum wage, gross domestic product (GDP), and producer price index (PPI) data from 2014 to 2022. We concluded that there is a positive correlation between minimum wage and unemployment and that the minimum wage has a Granger causal link to unemployment. Although further research is required to establish a definite causal link, the findings in this paper establish a positive relationship and strengthen the case that a higher minimum wage has a causal link to a higher level of unemployment. These results imply that greater consideration of the of minimum wage on unemployment is needed in minimum wage setting.

Employment effects of minimum wages in a dual economy: Evidence from Thailand

This study employs both theoretical insights and empirical techniques to investigate the impact of a minimum wage increase on employment when minimum wage coverage is incomplete. Previous empirical studies on this topic have found conflicting results: while some find the share of the covered sector decreases, some find it increases. In the theoretical part, we extended the classic two-sector model and found both scenarios can occur depending on the parameters of the economy. Empirically, using as a natural experiment a novel minimum wage policy in Thailand whereby 40 percent of workers were not covered by the legislation, we found that one percent increase in the minimum wage reduced low-skilled employment in the covered sector by 0.1–1.1 percent and increased employment in the uncovered sector. The official unemployment rate also decreased because the rise in the minimum wage lowered the probability of covered employment to such a large extent that workers instead turned to the uncovered sector.

Pengaruh Upah Minimum Dan Tingkat Partisipasi Angkatan Kerja Terhadap Tingkat Pengangguran Terbuka Di Jawa Timur Periode 2018-2022

This research aims to determine the effect of minimum wages and labor force participation on open unemployment in East Java Province 2018-2022. The dense population makes Indonesia face economic problems such as open unemployment. This happens because the number of job seekers is not balanced with the number of jobs available. The level of open unemployment occurs in every region, especially in East Java Province. Based on BPS data for the 2018-2022 period, East Java Province experienced an increase in open unemployment in 2020 with a percentage of 5.84%. The research method used uses a quantitative descriptive model approach with combined data between time series and cross-sections. The analytical method used in this research is the multiple regression test method, panel data model which is processed using SPSS version 26. The data collection technique is taken from secondary data from BPS East Java Province in 38 regions. The research results show that the influence of minimum wage instruments and labor force participation on open unemployment in East Java Province can be seen from the statistical probability values of the t test and f test. The results of the t test showed that the minimum wage instrument (X1) had a significant effect on the open unemployment rate (Y) in East Java Province. Meanwhile, the labor force participation instrument (X2) does not show a significant influence on the open unemployment rate (Y) in East Java Province. Meanwhile, the results of the f test research show that the two instruments (X1 and X2) simultaneously have a significant influence on the open unemployment rate (Y) in East Java Province.

Pengaruh Pertumbuhan Ekonomi, Upah Minimum dan Investasi Terhadap Tingkat Pengangguran di Provinsi Kalimantan Selatan

This study aims to determine the effect of economic growth, minimum wage, and investment partially and simultaneously on the unemployment rate in South Kalimantan Province and to determine the most dominant factor influencing the unemployment rate in South Kalimantan Province. This study uses secondary data obtained from BPS and BKPM South Kalimantan Province. The analytical technique used in this research is multiple linear regression analysis. This study's results indicate that the Minimum Wage variable partially significantly influences the unemployment rate in the province of South Kalimantan with a probability of 0.0010 <0.05. Meanwhile, economic growth and investment do not have a significant effect. The variables of economic growth, minimum wage, and investment simultaneously significantly affect the unemployment rate in South Kalimantan Province; the minimum wage has the most dominant influence on the unemployment rate in South Kalimantan Province.

The Effect of Minimum Wage and Per Capita Expenditure on Poverty in Provincial Districts D.I. Yogyakarta

Poverty is a condition when a person lives below the poverty line and is unable to meet his basic needs. Poverty is one of the economic and social problems that is difficult to overcome. Province of D.I. Yogyakarta is the province with the highest poverty on the island of Java and ranks 11th out of 34 of the poorest provinces in Indonesia in 2021. The purpose of this study is to analyze the effect of the minimum wage and per capita expenditure on poverty in the district/cities of the province of D.I. Yogyakarta with the chosen model, namely the Random Effect Model (REM). The data used in this study are panel data for 2013-2021, the data analysis technique used is multiple linear regression with the Generalized Least Square (GLS) method with eviews 12. The results show that simultaneously the minimum wage and per capita expenditure have an effect towards poverty in the district/cities of the Province of D.I Yogyakarta. The results of the study also prove that partially the minimum wage does not have a significant effect on poverty, and per capita expenditure has a significant negative effect on poverty, which means that an increase in per capita expenditure will reduce poverty.

Minimum Wage Employment Effects and Labour Market Concentration

Abstract This paper shows that more highly concentrated labour markets experience more positive employment effects of the minimum wage. In the most concentrated labour markets, employment rises following a minimum wage increase. The paper establishes its main findings by studying the effects of local minimum wage increases on a key low-wage retail sector, and using data on labour market concentration that covers the entirety of the U.S. with fine spatial variation at the occupation level. The results carry over to the fast-food sector and the entire low-wage labour market and are robust to using proxies of labour market concentration available for a broader range of industries, such as the number of establishments and population density. A model of oligopsonistic competition can explain these effects: there is more room to increase wages in high-concentration areas where wages tend to be further below marginal productivity. These findings provide evidence supporting monopsonistic wage setting as an explanation for the near-zero minimum wage employment effect documented in prior work.