Does the minimum wage affect employment? Evidence from the manufacturing sector in Indonesia.

Autor/inn/en	Del Carpio, Ximena; Nguyen, Ha; Wang, Liang Choon
Institution	Weltbank
Titel	Does the minimum wage affect employment? Evidence from the manufacturing sector in Indonesia.
Quelle	Washington, DC (2012), 36 S. PDF als Volltext kostenfreie Datei Link als defekt meldenVerfügbarkeit
Reihe	World Bank policy research working paper. 6147
Sprache	englisch
Dokumenttyp	online; Monographie
Schlagwörter	Bildungsniveau; Angestellter; Arbeitsproduktivität; Indonesien; Produktivität; Auswirkung; Unternehmensgröße; Verarbeitendes Gewerbe; Lohnentwicklung; Bildungsniveau; Mindestlohn; Lohnhöhe; Beschäftigungseffekt; Lohnentwicklung; Lohnhöhe; Mindestlohn; Produktivität; Unternehmensgröße; Verarbeitendes Gewerbe; Arbeitsproduktivität; Industriearbeiter; Auswirkung; Geschlechtsspezifik; Angestellter; Indonesien
Abstract	Using survey data from the Indonesian manufacturing industry, this paper investigates the impact of minimum wage on employment and wages offered by Indonesian manufacturing firms from 1993 to 2006. It shows that the estimated effects of minimum wage on employment are positive within a province (i.e., with province fixed effects), but negative within a firm (i.e., with firm fixed effects), indicating the importance of using firm panel data to reduce the endogeneity bias in estimates. It finds significant heterogeneous effects of minimum-wage changes on employment. The employment effects of minimum wages are significant and negative among small firms and less educated workers, but not among large firms and workers with high school education and above. The negative employment impact is more severe for non-production workers than for production workers. The analysis also shows that the minimum wage disproportionally affects women: most of the nonproduction job losses are experienced by female workers. Lastly, the paper finds that the minimum wage is more correlated with the average wage of small firms than that of large firms, suggesting that minimum wages are more binding in small firms. (Author's abstract, IAB-Doku).
Erfasst von	Institut für Arbeitsmarkt- und Berufsforschung, Nürnberg
Update	2013/1