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Minimum wages, de facto private standards, and trade diversion in horticulture

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  • Marlies Piek
  • Dieter von Fintel

Abstract

The effects of minimum wages on workers and firms depend on enforcement and compliance. While most research examines local determinants, this paper explores whether international market enforcement influences minimum wage impacts. In South Africa farmers exporting to the EU must comply with private standards mandating minimum wage adherence. Using difference-in-differences and administrative tax data, we analyse how a large agricultural minimum wage increase affected export stance, employment, and wages under varying private standards.

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  • Marlies Piek & Dieter von Fintel, 2025. "Minimum wages, de facto private standards, and trade diversion in horticulture," WIDER Working Paper Series wp-2025-10, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2025-10
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    References listed on IDEAS

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