Minimum Wage Policy and Poverty in Indonesia

• Tác giả: Nurina Merdikawati
• Ngôn ngữ: eng
• Ký hiệu phân loại: 181.16 *Indonesia
• Thông tin xuất bản: Published by Oxford University Press on behalf of the World Bank, 2025
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 292572
• Chủ đề: 1. JAVA ISLAND; 2. MINIMUM WAGE; 3. POVERTY

Tóm tắt

This paper investigates whether the minimum wage policy significantly reduced poverty in Java Island, Indonesia, between 2002 and 2014. Its identification strategy exploits variation in minimum wages over time within pairs of geographically proximate districts. The study finds that the minimum wage has a distributional impact on wage workers just below the 20th percentile up to those in the middle of the wage distribution, with no overall loss of employment. However, the minimum wage policy has no distributional impact on per capita household expenditure and a limited effect on changes in poverty status.