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The impact of minimum wage legislation in developing countries where coverage is incomplete

  • Patricia Jones
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    This paper examines the impact of minimum wage legislation in developing countries where coverage is incomplete. Using a rich data set from Ghana, it estimates the extent to which a binding minimum wage alters employment in both the formal and informal sectors of the labor market. The data reveal that Ghana`s minimum wage policies during the 1970s and 1980s led to a reduction of formal sector jobs and an increase in informal sector jobs. In addition, there is some evidence to suggest that a large proportion of the displaced workers from the formal sector ended up working in the informal sector.

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    File URL: http://www.csae.ox.ac.uk/workingpapers/pdfs/9802text.pdf
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    Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number WPS/1998-02.

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    Date of creation: 01 Dec 1997
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    Handle: RePEc:oxf:wpaper:wps/1998-02
    Contact details of provider: Postal: Manor Rd. Building, Oxford, OX1 3UQ
    Web page: http://www.economics.ox.ac.uk/
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    1. 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.
    2. Mincer, Jacob, 1976. "Unemployment Effects of Minimum Wages," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages S87-104, August.
    3. Alida Castillo Freeman & Richard B. Freeman, 1991. "Minimum Wages in Puerto Rico: Textbook Case of a Wage Floor?," NBER Working Papers 3759, National Bureau of Economic Research, Inc.
    4. Brown, Charles & Gilroy, Curtis & Kohen, Andrew, 1982. "The Effect of the Minimum Wage on Employment and Unemployment," Journal of Economic Literature, American Economic Association, vol. 20(2), pages 487-528, June.
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