The Determinants Of Minimum Wage Violation In South Africa
This paper investigates the determinants of non-compliance or violation of minimum wage legislation in South Africa, a country where violation is high, at just under 50 percent. The number of labour inspectors per capita is used as a proxy for enforcement, whilst non-compliance is measured using an index of violation that measures both the proportion of individuals violated, as well as the depth of violation of an individual. Due to the potential simultaneity between enforcement and compliance, the number of labour inspectors is instrumented by the number of non-inspectors. The results suggest that there are a variety of factors impacting on violation, including firm-level, sectoral and spatial characteristics. One of the key determinants of violation is found to be the local unemployment rate.
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- Haroon Bhorat & Ravi Kanbur & Natasha Mayet, 2013.
"A Note on Measuring the Depth of Minimum Wage Violation,"
CEIS, vol. 27(2), pages 192-197, 06.
- Bhorat, Haroon & Kanbur, Ravi & Mayet, Natasha, 2011. "A Note On Measuring The Depth Of Minimum Wage Violation," Working Papers 126533, Cornell University, Department of Applied Economics and Management.
- 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.
- William F. Maloney & Jairo Nunez Mendez, 2003.
"Measuring the Impact of Minimum Wages: Evidence from Latin America,"
NBER Working Papers
9800, National Bureau of Economic Research, Inc.
- William Maloney & Jairo Mendez, 2004. "Measuring the Impact of Minimum Wages. Evidence from Latin America," NBER Chapters, in: Law and Employment: Lessons from Latin America and the Caribbean, pages 109-130 National Bureau of Economic Research, Inc.
- Maloney, William F. & Nunez, Jairo & Cunningham, Wendy & Fiess, Norbert & Montenegro, Claudio & Murrugarra, Edmundo & Santamaria,Mauricio & Sepulveda, Claudia, 2001. "Measuring the impact of minimum wages : evidence from Latin America," Policy Research Working Paper Series 2597, The World Bank.
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