Minimum Wages and Poverty in a Developing Country: Simulations from Indonesia's Household Survey
AbstractSummary This study focuses on minimum wages, income distribution, and poverty, taking Indonesia as a case study. A simulation approach assesses who benefits and who pays for minimum wage increases. Among the poor, a minimum wages increase boosts net incomes for 21% of the households, while it results in net losses to 79% of the households. The impact is slightly less severe when there are job losses. Although minimum wage increases are mildly progressive (the non-poor pay a higher share of the costs), they are unlikely to be an effective antipoverty instrument in developing countries like Indonesia.
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Bibliographic InfoArticle provided by Elsevier in its journal World Development.
Volume (Year): 36 (2008)
Issue (Month): 5 (May)
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Web page: http://www.elsevier.com/locate/worlddev
Other versions of this item:
- Kelly Bird & Chris Manning, 2005. "Minimum Wages and Poverty in a Developing Country: Simulations from Indonesia's Household Survey," Departmental Working Papers 2005-09, The Australian National University, Arndt-Corden Department of Economics.
- I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
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