A Note On Measuring The Depth Of Minimum Wage Violation
AbstractIn the empirical literature on minimum wage enforcement, the standard approach is to measure the number of violations, not their depth. In this paper we present a family of violation indices which, by analogy with poverty indices, can emphasize the depth of violation to different degrees. The standard measure is a special case of this family of indices, but other members of the family highlight the depth of violation. We present an application to South Africa to show that the depth of violation matters, and is not captured by the standard measure in actual situations.
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Bibliographic InfoPaper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 126533.
Date of creation: 2011
Date of revision:
Minimum Wage; Depth of Violation; South Africa; Labor and Human Capital; Public Economics; J38; O55;
Other versions of this item:
- Haroon Bhorat & Ravi Kanbur & Natasha Mayet, 2013. "A Note on Measuring the Depth of Minimum Wage Violation," LABOUR, CEIS, vol. 27(2), pages 192-197, 06.
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
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