Do minimum wage increases cause inflation? evidence from vietnam
AbstractIt is often argued that minimum wage increases can lead to increased inflation. This paper examines the impact of minimum wage increases on inflation in Vietnam during the 1994-2008 period. Inflation is measured by a monthly overall Consumer Price Index (CPI) and a monthly food CPI. It is found that the minimum wage increases did not increase inflation. Since the minimum wage increases often took place one or two months before the Vietnamese New Year festivals, observed increases in monthly inflation after the minimum wage increases were caused by increased consumption demand during the New Year festivals, not by the minimum wage increases.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 32 (2012)
Issue (Month): 1 ()
Contact details of provider:
Minimum wages; inflation; CPI; Vietnam.;
Other versions of this item:
- Nguyen, Cuong, 2011. "Do Minimum Wage Increases Cause Inflation? Evidence from Vietnam," MPRA Paper 36750, University Library of Munich, Germany.
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
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