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Domestic Violence, Labor Market, and Minimum Wage: Theory and Evidence

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  • Chavez Carlos

    (Universidad Nacional Mayor de San Marcos, Lima, Peru)

Abstract

This paper examines the impact of minimum wage on domestic violence, considering employment status of both the woman and her partner, as well as formal or informal employment. The study focuses on physical, sexual, and psychological violence, proposing two channels: the woman’s channel based on economic dependence theory, and the partner channel based on theories of financial stress and relative resources. Various empirical strategies, including cross-sectional regression, diff-in-diff, and triple difference, are employed using data from the demographic and family health survey. The findings indicate that increasing the minimum wage reduces domestic violence against women, considering direct effects and the influence of both the woman and her partner. Despite concerns about the informal labor market in Peru and the benefits of minimum wage, this research suggests positive societal effects such as reduced domestic violence.

Suggested Citation

  • Chavez Carlos, 2023. "Domestic Violence, Labor Market, and Minimum Wage: Theory and Evidence," Review of Economics, De Gruyter, vol. 74(3), pages 195-233, November.
    • Handle: RePEc:lus:reveco:v:74:y:2023:i:3:p:195-233:n:5
    DOI: 10.1515/roe-2023-0013
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    More about this item

    Keywords

    IPV; domestic violence; minimum wage; labor market;
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy

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