Publication:
Minimum Wages and Social Policy : Lessons from Developing Countries

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dc.contributor.authorCunningham, Wendy
dc.date.accessioned2012-05-31T18:04:14Z
dc.date.available2012-05-31T18:04:14Z
dc.date.issued2007
dc.description.abstractThis report examines how minimum wages affect the income poverty of workers, their households, and the state. It does not question whether or not the minimum wage is a good policy: instead, it focuses on the tradeoffs in setting the minimum wage level. It takes as a starting point the literature on the wage and employment effects of minimum wages in Latin America and expands the discussion in three ways. First, the household is placed at the center of the debate. Poverty and inequality are measured at the level of the household, rather than at the individual level, to allow for employment and wage trade-offs among individuals who pool their income. Second, new research is presented on how the minimum wage affects groups whose labor market participation and success is considered "vulnerable": that is, youth, women, the low-skilled, and informal sector workers. Third, the implications of the minimum wage on wage and social expenditures of the government are measured. In the end, the report argues that the minimum wage by itself is not a sufficient tool for protecting the income of the poorest households, and that other social protection tools are necessary to complement it. The report has eight sections following the introduction. Chapter 2 presents a history of the minimum wage in LAC, the theory behind the functioning of the minimum wage, and empirical evidence from the OECD to lay a foundation for the Latin American experience. Chapter 3 presents an overview of the minimum wage in the Region, including a discussion of the definition of a minimum wage, institutional design, and who earns it. Chapter 4 focuses on the worker; it summarizes the existing literature, presents new evidence on the wage and employment effects of a minimum wage, and gives special attention to "vulnerable" labor market groups. Chapter 5 turns its attention to the household and presents the new (and only) evidence on the effects of the minimum wage on household poverty and inequality in LAC. Chapter 6 considers the state and discusses the cost of minimum wages to the government. Chapter 7 opens the discussion to the rest of the world and considers the lessons learned in other countries about setting, managing, and enforcing the minimum wage. Finally, chapter 8 concludes and presents policy considerations.en
dc.identifierhttp://documents.worldbank.org/curated/en/2007/01/8091515/minimum-wages-social-policy-lessons-developing-countries
dc.identifier.doi10.1596/978-0-8213-7011-7
dc.identifier.isbn0-8213-7011-1
dc.identifier.urihttps://hdl.handle.net/10986/6760
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesDirections in Development; Human Development
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectAVERAGE WAGE
dc.subjectAVERAGE WAGES
dc.subjectBARGAINING POWER
dc.subjectBENEFICIARIES
dc.subjectCASH TRANSFERS
dc.subjectCLOSED ECONOMIES
dc.subjectCOLLECTIVE BARGAINING
dc.subjectCOMPETITIVE MARKET
dc.subjectCURRENCY
dc.subjectDEMOGRAPHIC GROUP
dc.subjectDEMOGRAPHIC GROUPS
dc.subjectDISMISSED WORKERS
dc.subjectDOMESTIC CURRENCY
dc.subjectDOMESTIC WORKERS
dc.subjectEARNING
dc.subjectEARNINGS
dc.subjectEARNINGS OF WOMEN
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC THEORY
dc.subjectECONOMICS
dc.subjectEFFICIENCY WAGES
dc.subjectEMPLOYEE
dc.subjectEMPLOYMENT
dc.subjectEMPLOYMENT EFFECTS
dc.subjectEXTERNALITIES
dc.subjectFAMILY INCOME
dc.subjectFAMILY MEMBERS
dc.subjectFEMALE WORKERS
dc.subjectFINANCES
dc.subjectFIRM SIZE
dc.subjectFORMAL EDUCATION
dc.subjectFORMAL SECTOR WAGE
dc.subjectFORMAL SECTOR WAGES
dc.subjectGENERAL EQUILIBRIUM
dc.subjectGENERAL EQUILIBRIUM MODELS
dc.subjectGENERAL POPULATION
dc.subjectGINI COEFFICIENT
dc.subjectHIGH WAGE
dc.subjectHOUSEHOLD CONSUMPTION
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLD INCOME INEQUALITY
dc.subjectHOUSEHOLD WEALTH
dc.subjectHUMAN CAPITAL
dc.subjectINCOME DISTRIBUTION
dc.subjectINCOME REDISTRIBUTION
dc.subjectINCOMES
dc.subjectINCREASE IN INCOMES
dc.subjectINFLATION
dc.subjectINFORMAL SECTOR
dc.subjectINFORMAL SECTOR WORKERS
dc.subjectJOB EXPERIENCE
dc.subjectJOB LOSS
dc.subjectJOB LOSSES
dc.subjectJOBS
dc.subjectLABOR DEMAND
dc.subjectLABOR FORCE
dc.subjectLABOR INCOME
dc.subjectLABOR LAWS
dc.subjectLABOR LEGISLATION
dc.subjectLABOR MARKET
dc.subjectLABOR MARKET CONDITIONS
dc.subjectLABOR MARKETS
dc.subjectLABOR MINISTRIES
dc.subjectLABOR ORGANIZATION
dc.subjectLABOR SHORTAGE
dc.subjectLABOR STANDARDS
dc.subjectLABOR SUPPLY
dc.subjectLABOR SUPPLY INCENTIVES
dc.subjectLABOR TURNOVER
dc.subjectLABORERS
dc.subjectLABOUR
dc.subjectLARGE FIRMS
dc.subjectLATIN AMERICAN
dc.subjectLAYOFFS
dc.subjectLIVING STANDARDS
dc.subjectLOW INCOMES
dc.subjectLOW-INCOME
dc.subjectMALE WORKERS
dc.subjectMANUFACTURING WAGE
dc.subjectMARITIME WORKERS
dc.subjectMARKET ECONOMIES
dc.subjectMARKET WAGE
dc.subjectMARKET WAGES
dc.subjectMAXIMUM WAGE
dc.subjectMINIMUM WAGE
dc.subjectMINIMUM WAGE LAW
dc.subjectMINIMUM WAGES
dc.subjectMONOPSONY
dc.subjectMONOPSONY POWER
dc.subjectMOTIVATION
dc.subjectOCCUPATION
dc.subjectOCCUPATIONS
dc.subjectOLDER WORKERS
dc.subjectPENSION
dc.subjectPENSION ISSUE
dc.subjectPOLITICAL ECONOMY
dc.subjectPOVERTY ALLEVIATION
dc.subjectPOVERTY LINE
dc.subjectPOVERTY LINES
dc.subjectPOVERTY RATES
dc.subjectPRICE INDEX
dc.subjectPRIMARY EDUCATION
dc.subjectPRIMARY SCHOOL
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY LEVELS
dc.subjectPUBLIC EXPENDITURES
dc.subjectPUBLIC WORKS
dc.subjectPURCHASING POWER
dc.subjectREAL WAGES
dc.subjectRENTS
dc.subjectRESEARCH ASSISTANCE
dc.subjectRESOURCE ALLOCATION
dc.subjectRURAL WORKERS
dc.subjectSAFETY
dc.subjectSAFETY NETS
dc.subjectSALARIED WORKER
dc.subjectSALARIED WORKERS
dc.subjectSALARIES
dc.subjectSECONDARY SCHOOL
dc.subjectSELF-EMPLOYMENT
dc.subjectSEVERANCE
dc.subjectSEVERANCE PAY
dc.subjectSEVERANCE PAY SYSTEM
dc.subjectSKILLED LABOR
dc.subjectSOCIAL BENEFITS
dc.subjectSOCIAL INSURANCE
dc.subjectSOCIAL PROTECTION
dc.subjectSOCIAL WELFARE
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE UNIONS
dc.subjectTRINIDAD AND TOBAGO
dc.subjectUNEMPLOYED
dc.subjectUNEMPLOYED POOR
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT BENEFIT
dc.subjectUNSKILLED WORKERS
dc.subjectVALUABLE
dc.subjectWAGE ADJUSTMENT
dc.subjectWAGE BILL
dc.subjectWAGE BOARDS
dc.subjectWAGE DETERMINATION
dc.subjectWAGE DISTRIBUTION
dc.subjectWAGE EARNERS
dc.subjectWAGE EFFECTS
dc.subjectWAGE EMPLOYMENT
dc.subjectWAGE FLOOR
dc.subjectWAGE GAIN
dc.subjectWAGE GAINS
dc.subjectWAGE GAP
dc.subjectWAGE INCREASE
dc.subjectWAGE INCREASES
dc.subjectWAGE INEQUALITY
dc.subjectWAGE LEVEL
dc.subjectWAGE LEVELS
dc.subjectWAGE POLICIES
dc.subjectWAGE POLICY
dc.subjectWAGE SECTOR
dc.subjectWAGE SET
dc.subjectWAGE STRUCTURE
dc.subjectWESTERN EUROPE
dc.subjectWORKER
dc.subjectWORKERS
dc.subjectWORKING POOR
dc.subjectWORLD MARKET
dc.subjectYOUNG PEOPLE
dc.subjectYOUNG WORKERS
dc.subjectYOUTH UNEMPLOYMENT
dc.titleMinimum Wages and Social Policy : Lessons from Developing Countriesen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.date.disclosure2010-04-20
okr.doctypePublications & Research::Publication
okr.doctypePublications & Research::Publication
okr.docurlhttp://documents.worldbank.org/curated/en/2007/01/8091515/minimum-wages-social-policy-lessons-developing-countries
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial Protection and Labor
okr.guid826061468142780021
okr.identifier.doi10.1596/978-0-8213-7011-7
okr.identifier.externaldocumentum000020953_20070814085357
okr.identifier.internaldocumentum8091515
okr.identifier.report40526
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/08/14/000020953_20070814085357/Rendered/PDF/405260Minimum0101OFFICIAL0USE0ONLY1.pdfen
okr.topicSocial Protections and Labor::Labor Markets
okr.topicSocial Protections and Labor::Labor Policies
okr.topicMacroeconomics and Economic Growth::Income
okr.topicWages
okr.topicCompensation and Benefits
okr.unitOffice of the Publisher (EXTOP)
okr.volume1 of 1
relation.isAuthorOfPublication37bc44c3-8af5-5f13-acac-468a089b1e1e
relation.isAuthorOfPublication.latestForDiscovery37bc44c3-8af5-5f13-acac-468a089b1e1e
relation.isSeriesOfPublication706db16a-e556-46f0-8283-1b4a4b88645c
relation.isSeriesOfPublication.latestForDiscovery706db16a-e556-46f0-8283-1b4a4b88645c
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