Do Minimum Wage Increases Cause Inflation? Evidence from Vietnam
AbstractIt is often argued that minimum wage increases can lead to increased inflation. This paper examines the impact of minimum wage increases on inflation in Vietnam during the 1994-2008 period. Inflation is measured by a monthly overall Consumer Price Index (CPI) and a monthly food CPI. It is found that the minimum wage increases did not increase inflation. Since the minimum wage increases often took place one or two months before the Vietnamese New Year festivals, observed increases in monthly inflation after the minimum wage increases were caused by increased consumption demand during the New Year festivals, not by the minimum wage increases.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 36750.
Date of creation: 20 Mar 2011
Date of revision:
Minimum wages; inflation; CPI; Vietnam;
Other versions of this item:
- Cuong Nguyen, 2012. "Do minimum wage increases cause inflation? evidence from vietnam," Economics Bulletin, AccessEcon, vol. 32(1), pages A9.
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-27 (All new papers)
- NEP-LAB-2012-02-27 (Labour Economics)
- NEP-MAC-2012-02-27 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lawrence Katz & Alan Krueger, 1992.
"The Effect of the Minimum Wage on the Fast Food Industry,"
Working Papers, Princeton University, Department of Economics, Industrial Relations Section.
678, Princeton University, Department of Economics, Industrial Relations Section..
- Lawrence F. Katz & Alan B. Krueger, 1992. "The effect of the minimum wage on the fast-food industry," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 46(1), pages 6-21, October.
- Katz, L.F. & Krueger, A.B., 1992. "The Effect of the Minimum Wage on the Fast Food Industry," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1584, Harvard - Institute of Economic Research.
- Lawrence F. Katz & Alan B. Krueger, 1992. "The Effect of the Minimum Wage on the Fast Food Industry," NBER Working Papers 3997, National Bureau of Economic Research, Inc.
- James M. MacDonald & Daniel Aaronson, 2000. "How do retail prices react to minimum wage increases?," Working Paper Series, Federal Reserve Bank of Chicago WP-00-20, Federal Reserve Bank of Chicago.
- Sara lemos, 2004.
"The Effect of the Minimum Wage on Prices,"
Discussion Papers in Economics, Department of Economics, University of Leicester
04/7, Department of Economics, University of Leicester.
- Nguyen Viet, Cuong, 2010. "The Impact of a Minimum Wage Increase on Employment, Wages and Expenditures of Low-Wage Workers in Vietnam," MPRA Paper 36751, University Library of Munich, Germany, revised 15 Aug 2011.
- Jon Frye & Robert J. Gordon, 1980.
"Government Intervention in the Inflation Process: The Econometrics of "Self-Inflicted Wounds","
NBER Working Papers
0550, National Bureau of Economic Research, Inc.
- Frye, Jon & Gordon, Robert J, 1981. "Government Intervention in the Inflation Process: The Econometrics of "Self-Inflicted Wounds"," American Economic Review, American Economic Association, American Economic Association, vol. 71(2), pages 288-94, May.
- Daniel Aaronson, 2001. "Price Pass-Through And The Minimum Wage," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 158-169, February.
- World Bank, 2013. "Minimum Wage Policy : Lessons with a Focus on the ASEAN Region," World Bank Other Operational Studies 16687, The World Bank.
- Nguyen, Cuong, 2012.
"Do Minimum Wages Affect Firms’ Labor and Capital? Evidence from Vietnam,"
48656, University Library of Munich, Germany.
- Nguyen Viet Cuong, 2014. "Do Minimum Wages Affect Firms’ Labor and Capital? Evidence from Vietnam," Working Papers, Department of Research, Ipag Business School 2014-179, Department of Research, Ipag Business School.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.