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Introducing a statutory minimum wage in middle and low income countries

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  • David N. Margolis

    (Paris School of Economics—CNRS, France, and IZA, Germany)

Abstract

Motivations for introducing a statutory minimum wage in developing countries include reducing poverty, advancing social justice, and accelerating growth. Attaining these goals depends on the national context and policy choices. Institutional capacity tends to be limited, so institutional arrangements must be adapted. Nevertheless, a statutory minimum wage could help developing countries advance their development objectives, even where enforcement capacity is weak and informality is pervasive.

Suggested Citation

  • David N. Margolis, 2014. "Introducing a statutory minimum wage in middle and low income countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-52, May.
    • Handle: RePEc:iza:izawol:journl:y:2014:n:52
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    References listed on IDEAS

    as
    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;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-27, December.
    2. Catherine SAGET, 2008. "Fixing minimum wage levels in developing countries: Common failures and remedies," International Labour Review, International Labour Organization, vol. 147(1), pages 25-42, March.
    3. William Brown, 2009. "The Process of Fixing the British National Minimum Wage, 1997–2007," British Journal of Industrial Relations, London School of Economics, vol. 47(2), pages 429-443, June.
    4. Kristensen, Nicolai & Cunningham, Wendy, 2006. "Do minimum wages in Latin America and the Caribbean matter ? Evidence from 19 countries," Policy Research Working Paper Series 3870, The World Bank.
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    Cited by:

    1. David N Margolis, 2014. "By Choice and by Necessity: Entrepreneurship and Self-Employment in the Developing World," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 26(4), pages 419-436, September.

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    More about this item

    Keywords

    minimum wages; institutional design; developing countries; informality; enforcement;
    All these keywords.

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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