Minimum Wages and Labor Supply in an Emerging Market

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Tác giả: Zaakhir Asmal

Ngôn ngữ: eng

Ký hiệu phân loại: 331.1 Labor force and market

Thông tin xuất bản: World Bank, Washington, DC, 2018

Mô tả vật lý:

Bộ sưu tập: Tài liệu truy cập mở

ID: 329380

This paper investigates the effect of multiple minimum wages, known as remuneration orders, on employment and working hours in Mauritius. Using data between 2004 and 2014, the analysis indicates that a 10 percent increase in the minimum wages brings about a slightly positive effect on employment in the covered sector, with an estimated employment elasticity of 0.113, which is within the range of elasticities found in previous studies of employment effects of minimum wages in low- and middle-income countries. The positive employment effect of minimum wages is also associated with a 2.3 percent increase in average working hours for men but a 1.8 percent decline in average working hours for women in the covered sector. In the uncovered sector, the significant positive effect along the intensive margin, estimated at 4.2 percent, is driven by changes in labor supply among men.
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