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A Note On Measuring The Depth Of Minimum Wage Violation

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  • Bhorat, Haroon
  • Kanbur, Ravi
  • Mayet, Natasha

Abstract

In 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 Info

Paper provided by Cornell University, Department of Applied Economics and Management in its series Working Papers with number 126533.

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Date of creation: 2011
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Handle: RePEc:ags:cudawp:126533

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Related research

Keywords: Minimum Wage; Depth of Violation; South Africa; Labor and Human Capital; Public Economics; J38; O55;

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  1. Strobl, Eric & Walsh, Frank, 2003. "Minimum Wages and Compliance: The Case of Trinidad and Tobago," Economic Development and Cultural Change, University of Chicago Press, vol. 51(2), pages 427-50, January.
  2. Rodgers, Dennis & Beall, Jo & Kanbur, Ravi, 2011. "LATIN AMERICAN URBAN DEVELOPMENT INTO THE 21ST CENTURY: Towards a Renewed Perspective on the City," Working Papers 126532, Cornell University, Department of Applied Economics and Management.
  3. Lucas Ronconi, 2010. "Enforcement and Compliance with Labor Regulations," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 63(4), pages 719-736, July.
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Cited by:
  1. Haroon Bhorat & Ravi Kanbur & Natasha Mayet, 2013. "The impact of sectoral minimum wage laws on employment, wages, and hours of work in South Africa," IZA Journal of Labor & Development, Springer, vol. 2(1), pages 1-27, December.
  2. Bhorat, Haroon & Kanbur, Ravi & Mayet, Natasha, 2011. "The Determinants Of Minimum Wage Violation In South Africa," Working Papers 126535, Cornell University, Department of Applied Economics and Management.

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