The Impact of Minimum Wage Policy on Wages and Employment in Developing Countries: The Case of Indonesia
Since the late 1980s, minimum wage have become an important plank of the Indonesian government's labour policy. Minimum wages have increased faster than average wages and GDP. As a result, minimum wages have become binding for the majority of workers. This study finds that minimum wages have a positive but statistically insignificant impact on average wages. On the other hand, minimum wages have a negative and statistically significant impact on employment. In particular, the disemployment impact is greatest for women, youth, and less educated workers. However, the employment prospects of white-collar workers are enhanced by increases in minimum wages.
|Date of creation:||Dec 2001|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (808) 944-7560
Fax: (808) 944-7399
Web page: http://eastwestcenter.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ewc:wpaper:wp38. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Brenda Higashimoto)
If references are entirely missing, you can add them using this form.