IDEAS home Printed from https://ideas.repec.org/a/nos/vgmu00/2016i4p27-44.html
   My bibliography  Save this article

Regionalization of Minimum Wages

Author

Abstract

Minimum wages are nearly universal policy instrument - they are applied in more than 100 countries (ILO, 2008). One striking feature, however, is their impressive diversity. These differences include the setting regimes, adjustment methods, coverage of employees and the role of social partners. The way in which the minimum wages are set is very important, as the fi xing mechanism may affect both the level and the responsiveness of the minimum wages to changes in key economic parameters. Many countries with vast territories and inter-regional economic differentiation have introduced regional minimum wages (RMW). The aim of this article is to analyze the mechanisms of MW regionalization that are used by countries with different socio-economic structure. What are the major advantages and disadvantages of these mechanisms? What is the role of social partners in setting the MWs at the regional level? And most important - what problems may be solved by the regionalization of the MWs?Based on the practice of the MW regionalization, we divide countries into four groups. However, the prevailing method is the coexistence of the national minimum wage floor set by the federal government and regional minimum wages. We conclude that the decentralized model allows taking into account the situation in the regional labor markets, including the dynamics and structure of employment, the share of low-wage labor and sectoral structure of production.

Suggested Citation

  • Nina Vishnevskaya, 2016. "Regionalization of Minimum Wages," Public administration issues, Higher School of Economics, issue 4, pages 27-44.
    • Handle: RePEc:nos:vgmu00:2016:i:4:p:27-44
    as

    Download full text from publisher

    File URL: http://vgmu.hse.ru/data/2016/12/27/1114777592/%D0%92%D0%B8%D1%88%D0%BD%D0%B5%D0%B2%D1%81%D0%BA%D0%B0%D1%8F%204-2016.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Boeri, Tito, 2012. "Setting the minimum wage," Labour Economics, Elsevier, vol. 19(3), pages 281-290.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Koichi Fukumura & Atsushi Yamagishi, 2020. "Minimum wage competition," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(6), pages 1557-1581, December.
    2. Casanova, Luis. & Jiménez, Maribel. & Jiménez, Mónica., 2015. "Calidad del empleo y cumplimiento del salario mínimo en Argentina," ILO Working Papers 994891263402676, International Labour Organization.
    3. Tommaso Ciarli & André Lorentz & Marco Valente & Maria Savona, 2019. "Structural changes and growth regimes," Journal of Evolutionary Economics, Springer, vol. 29(1), pages 119-176, March.
    4. Andrea Garnero & Stephan Kampelmann & François Rycx, 2015. "Sharp Teeth or Empty Mouths? European Institutional Diversity and the Sector-Level Minimum Wage Bite," British Journal of Industrial Relations, London School of Economics, vol. 53(4), pages 760-788, December.
    5. André Lorentz & Tommaso Ciarli & Maria Savona & Marco Valente, 2016. "The effect of demand-driven structural transformations on growth and technological change," Journal of Evolutionary Economics, Springer, vol. 26(1), pages 219-246, March.
    6. Pedro S. Martins, 2021. "30,000 Minimum Wages: The Economic Effects of Collective Bargaining Extensions," British Journal of Industrial Relations, London School of Economics, vol. 59(2), pages 335-369, June.
    7. Evangelia Papapetrou & Pinelopi Tsalaporta, 2018. "Macroeconomic outcomes, collective bargaining and intersectoral productivity differentials: a panel approach," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(4), pages 765-799, November.
    8. Marta Martínez Matute & Pedro S. Martins, 2022. "How representative are social partners in Europe? The role of dissimilarity," LABOUR, CEIS, vol. 36(4), pages 424-444, December.
    9. Dr. Nickolaos Giovanis, 2018. "Determining Factors of Minimum Wage in the Member States of the OECD," Sumerianz Journal of Business Management and Marketing, Sumerianz Publication, vol. 1(4), pages 93-101, 12-2018.
    10. Benassi, Chiara., 2011. "The implementation of minimum wage : challenges and creative solutions," ILO Working Papers 994629883402676, International Labour Organization.
    11. Marianna Belloc & Paolo Naticchioni & Claudia Vittori, 2023. "Urban wage premia, cost of living, and collective bargaining," Journal of Economic Geography, Oxford University Press, vol. 23(1), pages 25-50.
    12. George Economides & Pantelis Kammas & Thomas Moutos, 2020. "On the Interaction between Minimum Wage Adoption and Fiscal Redistribution: A Theoretical and Empirical Investigation," CESifo Working Paper Series 8355, CESifo.
    13. Ciarli, Tommaso & Valente, Marco, 2016. "The complex interactions between economic growth and market concentration in a model of structural change," Structural Change and Economic Dynamics, Elsevier, vol. 38(C), pages 38-54.
    14. Anna Lukiyanova & Nina Vishnevskaya, 2016. "Decentralisation of the minimum wage setting in Russia: Causes and consequences," The Economic and Labour Relations Review, , vol. 27(1), pages 98-117, March.
    15. Patrick Mokre, 2019. "Ausnahmezustand Geringverdienst? Ursachen der Beschäftigungsverhältnisse unter der Steuergrenze," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 2019(2), pages 203-227.
    16. Garnero, Andrea & Kampelmann, Stephan & Rycx, François, 2013. "Sharp Teeth or Empty Mouths? Revisiting the Minimum Wage Bite with Sectoral Data," IZA Discussion Papers 7351, Institute of Labor Economics (IZA).
    17. Bernardo Fanfani, 2019. "The Employment Effects of Collective Bargaining," Working papers 064, Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    18. Anderton, Robert & Di Lupidio, Benedetta, 2019. "Effects of labour and product market regulation on worker flows: evidence for the euro area using micro data," Working Paper Series 2312, European Central Bank.
    19. Tommaso Ciarli & Andre' Lorentz & Maria Savona & Marco Valente, 2012. "The role of technology, organisation, and demand in growth and income distribution," LEM Papers Series 2012/06, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    20. Anna Lukiyanova & Nina Vishnevskaya, 2015. "The Decentralization of Minimum Wage Setting in Russia Economies," HSE Working papers WP BRP 90/EC/2015, National Research University Higher School of Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nos:vgmu00:2016:i:4:p:27-44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Irina A. Zvereva (email available below). General contact details of provider: http://vgmu.hse.ru/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.