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The simultaneous impacts of the increased minimum wage on the labor market and economy growth in Cambodia: Inside -Outside model or Monopoly-Union model?

Author

Listed:
  • Phon, Sophat
  • Khan, Sophy
  • Pich, Chansothi

Abstract

After finishing the civil war in 1993, Cambodia and its economy seems doing well with sustainable growth and robustness via many dimensional sectors as well as garment sector,constructions,Agriculture and tourism. In late 2007, the global crisis had effected globally to the world with huge hazards to ASEAN and Cambodia, especially to main sectors of Cambodia's economy pillars as garment sector , tourism sector and construction sector with pushing more unemployment's and more decline to tourism. Fortunately, In the garments sector had been estimated to lose the job about 70,000 jobs at the end of 2008 while total Cambodia's export were on huge garments side. This issue revealed that the vulnerability of the export led growth which is still concerned for this sector and most of them are suffered to the females in market. Furthermore, due to the above figures and model comparison state that even Cambodia had concerned the impacts with unemployment effects from the last recessions but the demand of labor are still high in which the FDIs still surged simultaneously years on years too.As results, during the periods of minimum wage increased, gross domestic products (GDP) is still growing up simultaneously while the estimated profit margins of garment sector bloomed as well as figure 11 and figure 9 mentioned.The gender inequality in workplace and specific age labor criteria are still critical indicator to investment and decision making which are effective to labor market information system as report from the NSDP update 2009-2013.The comparison of modelling in garment sector are seemed well adaptation with real economic situations on Inside and outside model in Cambodia.yet above challenges and gaps would be hampering the growth and poverty reduction while appropriate policies should be tied up with the strong labor market information and some significant adopted policies which will be addressing these issues.

Suggested Citation

  • Phon, Sophat & Khan, Sophy & Pich, Chansothi, 2017. "The simultaneous impacts of the increased minimum wage on the labor market and economy growth in Cambodia: Inside -Outside model or Monopoly-Union model?," MPRA Paper 88075, University Library of Munich, Germany, revised 26 Jul 2018.
    • Handle: RePEc:pra:mprapa:88075
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    References listed on IDEAS

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    More about this item

    Keywords

    Minimum Wage; Cambodia ; Poverty and gender;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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