Minimum Wages in Kenya
This paper examines the performance of minimum wage legislation in Kenya, both in terms of its coverage and enforcement as well as in terms of their implications for wages and employment. Our findings based on the 1998/99 labor force data – the last labor force survey available – indicate that minimum wages, which, in principle, apply to all salaried employees, were better enforced and had stronger effects in the non-agricultural industry than in the agricultural one. More specifically, our results suggest that (i) compliance rates were higher in occupations other than agriculture, (ii) minimum wages were positively associated with wages of low-educated workers and women in non-agricultural activities, while no such relationship is found for workers in agriculture, and (iii) higher minimum wages were associated with a lower share of workers in formal activities in a given occupation and location. Our estimates indicate that a 10 percent point increase in the minimum to median wage ratio could be associated with a decline in the share of formal employment of between 1.2-5.6 percentage points and an increase of between 2.7-5.9 points in the share of self-employment.
|Date of creation:||Mar 2008|
|Date of revision:|
|Publication status:||published in: Ravi Kanbur and Jan Svejnar (eds.): Labour Markets and Economic Development, Routledge, 2009|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
References listed on IDEAS
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.:
- Sara Lemos, 2004. "Minimum Wage Policy and Employment Effects: Evidence from Brazil," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
- Stephen Devereux, 2005. "Can minimum wages contribute to poverty reduction in poor countries?," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(7), pages 899-912.
- David Card & Alan B. Krueger, 1993.
"Minimum Wages and Employment: A Case Study of the Fast Food Industry in New Jersey and Pennsylvania,"
NBER Working Papers
4509, National Bureau of Economic Research, Inc.
- Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-93, September.
- David Card & Alan Krueger, 1993. "Minimum Wages and Employment: A Case Study of the Fast Food Industry in New Jersey and Pennsylvania," Working Papers 694, Princeton University, Department of Economics, Industrial Relations Section..
- Patricia Jones, 1997. "The impact of minimum wage legislation in developing countries where coverage is incomplete," Economics Series Working Papers WPS/1998-02, University of Oxford, Department of Economics.
- Martφn Rama, 2001.
"The Consequences of doubling the minimum wage: The case of Indonesia,"
Industrial and Labor Relations Review,
ILR Review, Cornell University, ILR School, vol. 54(4), pages 864-881, July.
- Rama, Martin, 1996. "The consequences of doubling the minimum wage : the case of Indonesia," Policy Research Working Paper Series 1643, The World Bank.
- David Neumark & Mark Schweitzer & William Wascher, 2000.
"The Effects of Minimum Wages Throughout the Wage Distribution,"
NBER Working Papers
7519, National Bureau of Economic Research, Inc.
- Neumark, D. & Schweitzer, M. & Wascher, W., 1999. "The Effect of Minimum Wages Throughout the Wage Distribution," Papers 9919, London School of Economics - Centre for Labour Economics.
- David Neumark & Mark Schweitzer & William Wascher, 1999. "The effects of minimum wages throughout the wage distribution," Working Paper 9919, Federal Reserve Bank of Cleveland.
- Dickens, Richard & Machin, Stephen & Manning, Alan, 1999.
"The Effects of Minimum Wages on Employment: Theory and Evidence from Britain,"
Journal of Labor Economics,
University of Chicago Press, vol. 17(1), pages 1-22, January.
- Richard Dickens & Stephen Machin & Alan Manning, 1994. "The Effects of Minimum Wages on Employment: Theory and Evidence from Britain," CEP Discussion Papers dp0183, Centre for Economic Performance, LSE.
- Oren M. Levin-Waldman, 1997. "Linking the Minimum Wage to Productivity," Economics Working Paper Archive wp_219, Levy Economics Institute.
- T. H. Gindling & Katherine Terrell, 2004.
"The Effects of Multiple Minimum Wages Throughout the Labor Market,"
William Davidson Institute Working Papers Series
2004-701, William Davidson Institute at the University of Michigan.
- Gindling, T. H. & Terrell, Katherine, 2004. "The Effects of Multiple Minimum Wages Throughout the Labor Market," IZA Discussion Papers 1159, Institute for the Study of Labor (IZA).
- Kevin Cowan & Alejandro Micco & Carmen Pagés, 2004. "Labor Market Adjustment in Chile," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
- Haroon Bhorat, 2000. "Are Wage Adjustments an Effective Mechanism for Poverty Alleviation?: Some Simulations for Domestic and Farm Workers," Working Papers 00041, University of Cape Town, Development Policy Research Unit.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp3390. 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: (Mark Fallak)
If references are entirely missing, you can add them using this form.