Person:
Del Carpio, Ximena Vanessa

Europe and Central Asia
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Fields of Specialization
Migration, Skills, Labor market, Impact of social policies, Labor regulations, Minimum wage, Education, Health, Gender
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ORCID
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Europe and Central Asia
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Last updated: January 31, 2023
Biography
Ximena Vanessa Del Carpio is the World Bank Program Leader in Turkey, Europe and Central Asia region. Under the leadership of the Country Director, she leads the program on Human Development Sectors (including Education, Health, Labor Markets, Social Inclusion, Jobs, Youth and Gender) as well as the Refugee Agenda. Prior to this, Del Carpio was a Senior Economist in the Social Protection and Labor global practice in Europe and Central Asia, and East Asia and Pacific. She also worked in the World Bank’s Independent Evaluation Group and the Human Development Network where she focused on evaluating the impact of various economic development programs in countries throughout Latin America and Africa. Before joining the World Bank, Del Carpio worked at the RAND Corporation and at the Minority Business Development Agency of the U.S. Department of Commerce. Del Carpio is originally from Peru, has a PhD in Political Economics from the University of Southern California and holds a dual MBA and Public Policy.  

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Publication

Does the Minimum Wage Affect Employment? Evidence from the Manufacturing Sector in Indonesia

2012-07, Del Carpio, Ximena, Nguyen, Ha

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 non-production 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.