Minimum Wage Research Articles

The impact of skill mismatch on unemployment, informality, and labour turnover

Abstract The objective of this paper is to analyse the impact of skill mismatch on labour turnover, unemployment, and informality, in the case of Colombia. We study Colombia because it is a developing country with one of the highest levels of unemployment and informality in Latin America, along with very restrictive institutions, such as the minimum wage. We found that skill mismatch can explain the high turnover of workers in the Colombian labour market, evident in the increase in hirings and also in separations. Additionally, we find a positive significant effect of skill mismatch on the levels of informality, but no significant effect on unemployment. This evidence remains even once we consider the role of labour market institutions such as minimum wage and non-wage labour costs.

The impact of investment, PDRB growth, and minimum wage on regional tax revenue across 34 provinces in Indonesia

The impact of investment, PDRB growth, and minimum wage on regional tax revenue across 34 provinces in Indonesia

Informal Employment, the Tertiary Sector, and the Gross Domestic Product: A Structural Equations Model for the Mexican Economy

In Mexico, approximately 55% of the working population is employed informally, contributing 24.4% to the Gross Domestic Product (GDP) in 2022. This study analyzed the impact of wages, taxes, government spending, and unemployment on the informal economy of Mexico from 1980 to 2022, as well as its relationship with the tertiary sector’s contribution to the GDP. The methodology of the study was structural equation modeling. The findings of this study revealed that an increase in taxes, the unemployment rate, and the minimum wage in Mexico tends to be accompanied by a rise in informal employment. Finally, a unitary change in the latent variable informality affected the growth of the tertiary sector’s contribution to the GDP by 0.37 units.

Analysing the Impact of Minimum Wage Laws on Low-Income Workers in Selected Government Ministries, Agencies, Departments and Parastatals in Benue State

This study analyzed the Impact of Minimum Wage Laws on Low-Income Workers in Selected Government Ministries, Agencies, Departments, and Parastatals in Benue State. It specifically examined the impact of the National Minimum Wage Act on Minority Workers as well as the impact of the Labour Act on Rural Workers in selected government MDAs in Benue State. The target population is 2,803 and a sample size of 338 was derived from Krejcie and Morgan method. The hypotheses were tested with simple linear regression analysis on Statistical Packages for Social Science (SPSS) at a 5 percent significant level. Hypothesis one revealed a statistically significant negative impact of the National Minimum Wage Act on minority workers in selected government MDAs in Benue State. Hypothesis two showed that there is a strong negative impact of the Labour Act on Rural Workers in selected government MDAs in Benue State. The study concluded that there is a statistically significant negative impact of impact of minimum wage laws on low-income workers in selected government ministries, agencies, departments and parastatals in Benue State. It was recommended that policymakers need to review and adjust the National Minimum Wage Act to ensure fair compensation for minority workers in government MDAs by conducting wage audits and aligning wages with the local cost of living. Also, the government needs to revise the labour to address the unique challenges of rural workers in government MDAs by implementing region-specific policies and stronger enforcement mechanisms.

Repeal of Subminimum Wages and Social Determinants of Health Among People With Disabilities.

People with disabilities experience pervasive health disparities driven by adverse social determinants of health, such as unemployment. Section 14(c) of the 1938 Fair Labor Standards Act has been a controversial policy that allows people with disabilities to be paid below the prevailing minimum wage, but its impact on employment remains unknown despite ongoing national debates about its repeal. To estimate whether state-level repeal of Section 14(c) was associated with employment-related outcomes for people with cognitive disability. This quasi-experimental, synthetic difference-in-differences study used individual-level data from the 2010-2019 American Community Surveys. Outcomes before and after subminimum wage law repeal in 2 states (New Hampshire and Maryland) that repealed Section 14(c) were compared with a synthetic group of control states that did not implement repeal. Individuals aged 18 to 45 years who reported having a cognitive disability were included. Data were analyzed from May 2023 to May 2024. Repeal of Section 14(c) in New Hampshire (2015) and Maryland (2016). Primary outcomes were labor force participation and employment rates. Secondary outcomes were annual wages, annual hours worked, hourly wages, and proportion earning above state minimum wage among employed individuals. The sample included 450 838 individuals. Of these, 253 157 (55.7%) were male, and the mean (SD) age was 31.3 (8.4) years. In state-specific analyses, New Hampshire's labor force participation and employment had a statistically significant increase by 5.2 percentage points (β = 0.05; 95% CI, 0-0.10; P = .04) and 7 percentage points (β = 0.07; 95% CI, 0.01-0.13; P = .03), respectively, following Section 14(c) repeal. Labor force participation and employment both increased in Maryland, although estimates were not statistically significant. Pooling both states, Section 14(c) repeal was associated with a statistically significant 4.7-percentage point (β = 0.05; 95% CI, 0.01-0.08; P = .01) increase in labor force participation and a nonsignificant 4.3-percentage point (β = 0.04; 95% CI, 0-0.09; P = .07) increase in employment. In this study, repeal of Section 14(c), a policy allowing subminimum wages for people with disabilities, led to increases in labor force participation, though with heterogeneity at the state level. These findings suggest the importance of state-level factors in shaping program effects, especially as national-level Section 14(c) repeal is being debated.

The effects of monthly minimum wages on the labor market

The effects of monthly minimum wages on the labor market

Analisis Pengangguran Terdidik di Indonesia

This study aims to determine and analyze Educated Unemployment in Indonesia. The data used is secondary data from 2013 to 2022 with a sample of 33 provinces in Indonesia obtained from the Central Statistics Agency (BPS) and the Investment Coordinating Board (BPKM). This study uses panel data regression analysis with the best model chosen is the Fixed Effect Model (FEM). The results found that: (1) Provincial Minimum Wage has a positive and significant effect on the number of educated unemployed in Indonesia, (2) Economic Growth has a negative and signific ant effect on the number of educated unemployed in Indonesia, (3) Foreign Direct Investment has a negative and insignificant effect on the number of educated unemployed in Indonesia and (4) Covid-19 Dummy Variable shows that during Covid-19 the increase in the number of educated unemployed in Indonesia is not significant compared to before Covid-19 occured. Based on the research, it is recommended for the government to protect labor by setting a minimum wage without ignoring the company's ability and the government is expected to create a labor-intensive investment climate.

Forecast Of Rainfed Agricultural Production In The State Of Pernambuco, Brazil

This research assesses rainfed agricultural production in the state of Pernambuco, which has 137 of its 185 municipalities officially characterized as being part of the semi-arid climate regime. The study classified rainfall periods in Pernambuco between 1944 and 2022 and investigated rainfall instability and its impact on aggregate productivity, aggregate harvested area and production value per hectare of bean, cassava and maize crops. The Auto-Regressive Integrated Moving Average model with Exogenous Variable Inputs (ARIMAX) was used, considering rainfall as an exogenous variable. The results showed that rainfall has a direct effect on the variables investigated, especially the harvested area. It was proven that in periods classified as normal and rainy, productivity, harvested area and production value per hectare showed higher results than those observed in the dry periods of, as was the assumption of the research. The study also confirmed that the models developed were parsimonious and capable of predicting the variables investigated. The results showed that productivities, harvested areas and production values per hectare for beans, cassava and corn experienced greater instability during periods of drought. The research also shows that the aggregated production values per hectare for the three crops are very low. In dry years, they are even lower than the minimum wage. This result confirms that the rural areas of Pernambuco where these crops are mostly grown are very poor

Two birds, one stone: minimum wage and child labor

PurposeThis paper investigates the impact of quasi-exogenous and substantial increases in the minimum wage on child labor outcomes in Türkiye. The study aims to provide empirical evidence on how minimum wage policies affect child labor outcomes in a developing country context, with a focus on gender and age differences. It seeks to understand whether minimum wage increases lead to a reduction in child labor and whether the impact is different for various demographic groups.Design/methodology/approachThe research employs a difference-in-differences methodology using data from the 2012 and 2019 Child Labor Force Survey in Türkiye. The treatment group consists of children from households with minimum wage earners, while the control group comprises children from other households. Various labor market outcomes are analyzed, and robustness checks are performed.FindingsOur findings indicate that while the overall effect of minimum wage increases on child labor is statistically insignificant, there are notable heterogeneous impacts across different demographic groups and employment sectors. Specifically, we observe a significant reduction in the employment probability of girls under the age of 15 and unpaid family workers. Additionally, the likelihood of younger children being wage earners decreases, and the minimum wage increase reduces employment in the agriculture and services sectors for certain subgroups. The impact is also more limited for children in single-adult-worker households.Social implicationsThese results underscore the varying effects of minimum wage policies on child labor and highlight the importance of considering demographic and sectoral differences in policy formulation. Policymakers should complement such policies with income-generating programs and targeted education initiatives to address child labor issues more comprehensively and sustainably.Originality/valueThis study fills a critical gap in the limited international literature on the causal effects of minimum wage policies on child labor incidence. One notable exception, Menon and van der Meulen Rodgers (2018) have explored the impact of minimum wage on child labor in India using regional variation, our study uniquely analyzes the effects at the household level in Türkiye. This approach provides valuable insights into how minimum wage changes affect child labor outcomes in a developing economy context with a high prevalence of minimum wage earners. It also contributes to the broader economic understanding of child labor and household income dynamics.

Dynamics of living income for coffee farming households in agricultural area development policy: Socio-spatial integration

A decent income is an important part of overcoming economic disparities in agricultural development, especially in developing countries where most of the population are small farmers. As a developing country, Indonesia has also established a decent standard of living by setting a minimum wage as a reference for a decent income at the national and regional levels. However, this benchmark is not relevant to be applied uniformly at all levels of workers. This research determines the national coffee development area as the study center. We developed the Anker living wage methodology as a simple concept for determining living income for certain worker communities, especially for small farmers in rural areas who dominate the type of work in Indonesia. a socio-spatial approach is used to visualize the distribution of the dynamics of a decent life in various conditions of farming households. We found that 96.6% of coffee farming households in the national coffee development area had an inadequate living income, and only 3.4% were at an adequate level. We conclude that the current state of agricultural land management does not guarantee a decent income, even though efforts have been made to maximize agricultural crop productivity. The spatial description also shows that this condition is evenly distributed throughout residential areas. It is hoped that this approach can become an essential reference in implementing agricultural development programs that focus on welfare and equitable development as benchmarks for sustainable development goals in the future.

First report on human T-lymphotropic virus 1 infection in a group of transgender women.

There is a lack of data on human T-lymphotropic virus 1 (HTLV-1) infection among transgender women (TGW). Therefore, this study estimated the prevalence of HTLV-1 infection in a group of TGW in Brazil. A cross-sectional study was conducted with 235 TGW in Goiânia City, Central Brazil. Respondent-driven sampling was used for recruitment. All participants were interviewed, and serum samples were tested for anti-HTLV-1/2 using an enzyme-linked immunosorbent assay (ELISA; Murex HTLV-I + II, DiaSorin, Dartford, United Kingdom). Seropositive samples were submitted for confirmation by Western blot (WB; MP Diagnostics HTLV BLOT 2.4 test, MP Biomedicals, Germany). The majority of participants were young (≤ 25 years old), self-declared mixed or brown ethnicity, single, had attended high school, and had a monthly income above US$ 255 (R$ 1,000,00; nearly the minimum wage in Brazil at the time). Most reported earlier age at first sex and various risk behaviors for sexually transmitted infections (STIs). Three TGW were anti-HTLV-1/2 positive by ELISA and were subsequently positive for HTLV-1 by WB, giving a crude HTLV-1 seroprevalence of 1.3%; 1.0% (95% CI: 0.0-1.9) after being weighted by RDS Analysis Tool (RDSAT). The HTLV-1 seropositive TGW reported high-risk sexual behaviors. In addition, one of them also engaged in injecting drug use. These data indicate the circulation of HTLV-1 in TGW in Goiânia City, Central Brazil. Given the alarming estimates of high-risk sexual behaviors, there is an urgent need to intensify health programs targeting this population to control and prevent HTLV-1 and other STIs effectively.

Why We Need Minimum Wages: Pay, Recognition, and Economic Citizenship

Statutory minimum wages have become an important tool for regulating labor markets. One major reason is the decline in collective wage bargaining. But how can minimum wages be justified? We show that their best justification does not lie in their economic effects but in the respect for social contributors that they express. The article takes an innovative interdisciplinary approach, bridging political philosophy and comparative political economy. We first discuss existing justifications in political practice and theory. We then show how a distinctive and robust justification should regard minimum wages as paying necessary respect to those who fulfill their obligation to contribute to social cooperation. Our justification thus suggests a new concept of economic citizenship and advances recognition theory applied to work. We outline further implications of the argument, such as the desirability of setting minimum wages through collective bargaining, and a tentative case for a maximum income.

The relationship between minimum wage and employment. A synthetic control method approach

Abstract Spain increased its minimum wage (MW) by 22% in 2019. Given the intense debate in the economic literature on the impact of MW increases on the labour market, we conduct an impact assessment of this policy. The synthetic control method will be used to replicate the Spanish labour market by means of a pool of European countries that, in the absence of other reliable measures, simulates the evolution of Spanish employment. This will allow us to identify the causal effect from the increase in the MW. After applying the technique, the increase in the MW is found to have no effect on employment. The results have been subjected to robustness tests such as leave one out or segmentation by gender or age.

Risk factors for the occurrence of schistosomiasis mansoni in a quilombola community in an endemic area in northeastern Brazil

Objective: To identify the risk factors related to Schistosomiasis mansoni in a quilombola community located in a highly endemic area in the Northeast of Brazil. Methods: This is an ecological epidemiological study conducted with 497 individuals, of both sexes aged over 4 years. Information on sociodemographic, economic, and environmental data from the quilombola community of Patioba was collected through a questionnaire, stored in an Excel database, and evaluated by descriptive statistics. Results: From the sample, 53.92% were women and 46.08% men, approximately 43.25% of the population had incomplete elementary education, 58.35% had a family income between 1 and 3 minimum wages, 49.89% disposed sewage in the street, 95.97% stated they had household garbage collection, 88.93% reported consuming well water, 65.19% reported having contact with natural waters, 26.15% had undergone diagnostic testing for schistosomiasis, and 15.69% had tested positive for the disease. During the visits, several snail breeding sites were observed. Conclusion: The absence of water supply and sewage treatment, the low socioeconomic status of the studied families, and the significant presence of the parasite's intermediate hosts in the streets of the settlement are strong indicators that this population is exposed to the risk of contracting the disease.

Frailty and related factors among community-dwelling older adults in Türkiye

Abstract Background Frailty in elderly can lead to complex challenges in the follow-up and management of health services. Ensuring comprehensive primary care services and social support can avert, reverse, or mitigate frailty in old age. We aimed to evaluate frailty and its associated factors in individuals aged ≥65 years. Methods We conducted a cross-sectional study in patients applying to primary care centres in 2024, in a city where 10% of the population is elderly. The centres were divided into clusters based on the socioeconomic status of the regions they serve, and nine were randomly selected by weight. A total of 1154 elderly who consecutively presented were included. A questionnaire including sociodemographic characteristics, Edmonton Frailty Scale, Loneliness Scale for the Elderly (LSE), Charlson Comorbidity Index (CCI), International Falls Effectiveness Scale (FES-I) was applied to the elderly. Results The mean age was 71.3±5.3 years, and 50.8% were male. In the study, 20.1% were frail, and 19.6% were apparently vulnerable. It was found that those aged 70-79 and ≥80 years, women, deceased/separated from their spouses, those with low education, those whose occupation was housewife, those earning below minimum wage, those who lived alone, non-exercisers, those taking >8 medications/day, and those who had ≥2 falls/last year were more frail. In multivariate logistic regression analysis, illiteracy (Odds ratio-OR:15.2, 95%CI:1.7-135.5), taking >8 medications/day (OR:4.1, 1.7-9.9), falling ≥2 times/last year (OR:3.4, 1.8-6.4) and ≥4 points on the CCI (OR:1.9, 1.0-3.4) were found to be predictors of frailty. Each score on the FES-I and LSE increased the risk of frailty by 1.08 (1.05-1.11) and 1.13 (1.08-1.17) times, respectively. Conclusions One in five people was found to be frail. Low education level, >8 medications/day, ≥2 falls in the last year, severity of comorbidity, fear of falling, and high levels of loneliness were found to be predictive factors for frailty. Key messages • Encouraging a healthy lifestyle to prevent comorbid diseases and early interventions to avoid falls can reduce frailty. • Providing social activities in primary care and promoting the elderly to participate in these activities can help prevent loneliness, which is a risk factor of frailty.

Indicators of primary health care workforce equity for attaining health equity

Abstract Background Healthcare workforce crises are often the result of inequities faced by healthcare workers. This study aims to discuss the primary policy questions related to health equity regarding the primary healthcare (PHC) workforce indicators. Methods Following the purposive review of published literature on HWF equity in PHC services, we applied an intersectional analysis of the compendiums of HWF indicators (e.g., supply, flows, skill mix, working conditions, promotion, training, funding, governance, etc.) to strategically link them to PHC policy issues for health equity and categorized qualitatively under each policy pillar against HWF crises. Results The proposed indicators address the measurement of multiple dimensions of health workforce equity. These include financial and non-financial incentives to monitor worker attrition reduction, gender pay gap, fairness in employment arrangements, remuneration, and working conditions. By monitoring the minimum wage for financially vulnerable health workforce groups, we can identify the need for potential increases to support well-being, reduce turnover, and increase productivity. Equally important is monitoring equity in health workforce education, planning, and management, which is crucial for achieving population health equity. By implementing indicators of health workforce diversity to address rural and underrepresented communities, primary healthcare managers can effectively plan the reduction of their unmet needs and minimize avoidable referrals. Conclusions To ensure equitable access to primary healthcare, we must measure workforce equity and its impact on population health. Monitoring the indicators of equitable health workforce policies and evaluating the improvement in retention and recruitment processes can more effectively address workforce crises. Key messages • Health workforce crises often stem from healthcare workforce inequities. • Health workforce equitable policies require a clear set of indicators.

Implementation and Constraints of Minimum Wage Regulations for Informal Sector Workers in Semarang Regency

Minimum wage rules were created as a safety net for employers to provide a living wage for their workers. However, in reality this rule is difficult to implement in the informal sector. Based on the research location in Semarang Regency, the purpose of this study is to determine and examine the implementation of minimum wages, determine and examine the obstacles in implementing regulations regarding minimum wages, and explain the form of legal protection provided by the government to guarantee adequate wages for informal sector workers in Semarang Regency. The research approach method used is socio-legal and applies analytical descriptive research specifications. The results of the study show that the rules regarding minimum wages have not been enforced in the informal sector. This obstacle is caused by 3 aspects. For example, from the aspect of workers, there are informal sector workers whose competence is below that of formal sector workers. From the aspect of employers, the provision of wages is highly dependent on business income. From the government's side, there is a distinction in the imposition of rules regarding minimum wages where minimum wage rules only apply in the formal sector. So that the form of legal protection for informal sector workers is non-existent. The only effort is to provide assistance and law enforcement if there has been a case of violation of the rights of informal sector workers.

Práticas higiênico-sanitárias em feiras de arte e gastronomia de Niterói/RJ, Brasil

Introduction: Street food is an important market segment with an impact on the generation of jobs, income, and appreciation of food culture. However, it poses a challenge for public health because it increases the risk of transmission of pathogens from foodborne disease. Objective: Evaluate the hygienic-sanitary practices of food handlers at fairs and the physical-functional conditions of gastronomy and arts fairs in the city of Niterói/RJ. Method: The descriptive methodology was applied, using a qualitative and quantitative approach. For data collection, two scripts were developed and applied to evaluate the functional conditions of the fairs and the hygienic-sanitary practices of the handlers during sales, and a questionnaire was administered to outline the socioeconomic profile of the workers. Results: 68.1% were women; average income of 3 minimum wages; 51.1% had completed higher education; 46.8% had never taken a Good Food Handling Practices course; 70.5% did not use hair protection; and 86.8% used adornments. In 40% of the fairs visited, there was the presence of animals/vectors, as well as the absence of toilet facilities for handlers. Conclusions: Thus, despite its socioeconomic importance, the street food trade represents a potential health risk. Therefore, it is necessary to expand the hygienic-sanitary training of handlers and improve the environmental conditions of fairs.

Analysis of The Influence of Population Number and Regional Minimum Wage on Unemployment in Central Kalimantan

This study aims to examine the impact of population and regional minimum wages on unemployment in Central Kalimantan. Understanding the factors influencing unemployment is crucial for policymakers, particularly in regions with unique economic and demographic challenges like Central Kalimantan. The research uses data from the period 2011-2023, applying Multiple Linear Regression Analysis to investigate the relationship between population (X1), regional minimum wages (X2), and unemployment (Y). Classical assumption tests, including normality, multicollinearity, autocorrelation, and heteroscedasticity, were conducted to ensure the validity of the regression model. The findings indicate that neither population nor regional minimum wages significantly affect unemployment in Central Kalimantan. These results suggest that other factors may play a more significant role in determining unemployment in the region, providing a basis for future research to explore additional variables and more complex interactions affecting regional unemployment rates.

State Minimum Wage and Mental Health Among Children and Adolescents

Mental health disorders are increasing for children and adolescents in the US, with those in poverty having especially high rates. More evidence is needed about the association between economic policies, such as the minimum wage, and children's mental health. To test the association between minimum wages and the mental health of children and adolescents. This repeated cross-sectional, population-based US study used data from 2001 to 2022. Participants included state-representative, stratified random samples of children from the National Survey of Children's Health and adolescents from the Youth Risk Behavior Surveillance System. Data analysis was performed from January 2023 to August 2024. State minimum wage policies. A total of 15 outcomes reported by caregivers or adolescents from survey data were evaluated: depression, anxiety, attention deficit disorder and/or attention-deficit/hyperactivity disorder, behavior disorders, mood symptoms, gastrointestinal symptoms, considered and attempted suicide, any unmet health care and mental health care, alcohol and marijuana use, physical fights, school absenteeism, and paid employment. The associations between minimum wage policies and mental health were tested using 2-way fixed-effects models, lifetime minimum wage models, and difference-in-differences models with event studies, all with state, year, and birth cohort fixed effects. Additional controls included individual-level demographics and state-level health insurance and welfare policies. Analyses included 239 534 children (aged 3-17 years; 117 111 girls [48.9%]) from the 2016 to 2022 National Survey of Children's Health, and 1 453 043 adolescents (aged 12-18 years; 711 380 girls [49.0%]) from the 2001 to 2021 Youth Risk Behavior Surveillance System. Across diverse modeling approaches, increases in minimum wages were not associated with clear, consistent improvements in mental health. For example, in 2-way fixed-effects models, a $1 increase in the minimum wage was not associated with changes in rates of depression (0.06 percentage points [pp]; 95% CI, -0.11 to 0.23 pp; P = .48), unmet mental health care (0.13 pp; 95% CI, -0.04 to 0.30 pp; P = .14), or attempted suicide (-0.17 pp; 95% CI, -0.47 to 0.13 pp; P = .26). There also were no clear improvements when stratifying by household income, parental education, race and ethnicity, nativity, or urbanicity. In this repeated cross-sectional study, changes in minimum wage policies over the past 2 decades were not accompanied by clear improvements in children's and adolescents' mental health. More evidence is needed on policy approaches to improve the mental well-being of children, particularly those from economically disadvantaged families.