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1
Draca, Mirko, Stephen Machin, and John Van Reenen. "Minimum Wages and Firm Profitability." American Economic Journal: Applied Economics 3, no. 1 (2011): 129–51. http://dx.doi.org/10.1257/app.3.1.129.
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We study the impact of minimum wages on firm profitability, exploiting the changes induced by the introduction of a UK national minimum wage in 1999. We use pre-policy information on the distribution of wages to implement a difference-in-differences approach. Minimum wages raise wages, but also significantly reduce profitability (especially in industries with relatively high market power). This is consistent with a simple model where wage gains from minimum wages map directly into profit reductions. There is some suggestive evidence of longer run adjustment to the minimum wage through falls in net entry rates. (JEL J31, J38, L25)
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Rosiński, Rafał. "The minimum wage in the national economy: reasons and changes in Poland." Ekonomia i Prawo 20, no. 2 (2021): 425–37. http://dx.doi.org/10.12775/eip.2021.026.
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Motivation: The minimum wage protect employees from excessively low wages. It helps ensure fair participation in economic development for the general public. The minimum wage in the economy is an essential element in a country’s economic policy. Decisions concerning the implementation and changes in the minimum wage are part of the socio-economic policy of the state. Research on minimum wage relate to its overall impact on the level and structure of wages, employment, productivity at work, the size of the gray economy, the level of poverty and public finances. Factors affecting changes in the minimum wage are formal and non-formal. The question therefore arises which factors are decisive in the Polish economy.
 Aim: The aim of this paper is to present the essence and causes of changes in the minimum wage in Poland in 2003–2020 with particular regard to formal and non-formal aspects.
 Results: On the basis of research carried out in Poland, a link between minimum wage and inflation was observed. There is also a fundamental relationship between the minimum wage and average wages in the economy. It has been shown that the minimum wage is not without significance for the impact on public finance sector in Poland.
3
Brown, William. "The toxic politicising of the National Minimum Wage." Employee Relations 39, no. 6 (2017): 785–89. http://dx.doi.org/10.1108/er-04-2017-0072.
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Purpose After 15 years of successful operation, the British Low Pay Commission’s management of the National Minimum Wage was threatened in 2015 by the government’s introduction the National Living Wage. The purpose of this paper is to consider the underlying principles of previous minimum wage fixing, and the additional thinking of the Living Wage Foundation and the review of the issue by the Resolution Foundation. Design/methodology/approach The paper draws on the 2016 reports of the Commission to argue that the two statutory wages are unavoidably interlinked and are tied to incompatible criteria. Findings The paper concludes that the predicted eventual impact of the National Living Wage on the labour market will be unsustainable. Research limitations/implications The paper is relevant to minimum wage research. Practical implications The paper is relevant to minimum wage policy. Social implications The paper is relevant to low pay policy. Originality/value The paper provides original analysis of minimum wage policy.
4
Dewi, Mentari Berliana Kemala. "Analisis Dampak Permintaan Naiknya Upah Minimum Terhadap Perekonomian, Hukum Dan Kesejahteraan Nasional." Indonesian State Law Review (ISLRev) 2, no. 1 (2019): 3017–321. http://dx.doi.org/10.15294/islrev.v2i1.38447.
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The purpose of this article is to show the impact caused by the Minimum Wage on the National economy. approach used In avoiding the exploitation of labor in Indonesia, the government as the highest authority of the country, issues labor regulations. The regulation regulates the Minimum Wage that companies must pay to workers. The minimum wage is a safety device from the government to prevent the exploitation of Indonesian workers. However, many of the Indonesian workers are not aware that the application of the minimum wage is by the decent standard of living set by the government. They do a lot of prosecutions so that the minimum wage they get is always increasing. If analyzed, the demand for rising minimum wages will also harm the nation's economy. In other words, that the government policy regarding minimum wages, which had wanted to protect labor exploitation, if not implemented properly, would adversely affect the economic development of thecommunity.
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Sychenko, Elena V., and Emanuele Menegatti. "Analysis of the new EU Adequate Minimum Wages Directive." Russian Journal of Labour & Law 14 (2024): 278–87. http://dx.doi.org/10.21638/spbu32.2024.118.
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Although under the Treaty on the Functioning of the European Union the EU does not have competence to set minimum wages (Article 153), the EU adopted a directive on an adequate minimum wage in 2022. The aim of the directive is to encourage the convergence of national minimum wages upwards, ensuring a decent standard of living in all EU countries. The purpose of this article is to analyse the actions included in the Directive and to assess the adequacy of its legal framework. Interest in the new EU minimum wage regulations stems from the ineffectiveness of the existing and temporarily 'paused' mechanism in Russia, which links the minimum wage to 42% of the median wage. In an explanatory memorandum to the law which reformed the minimum wage in Russia in 2021, the authors refer to the "European experience". An analysis of the new EU directive showed that although it is largely advisory in nature, the EU obliges member states to ensure a decent level of the minimum wage that can be calculated on the basis of 60% of the median gross wage or 50% of the average gross wage. In addition, the EU establishes the factors to be taken into account in determining the minimum wage: the purchasing power of the statutory minimum wage in relation to the cost of living; the general level of wages and their distribution; the rate of wage growth; long-term national productivity levels and its development.
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Annazah, Nur Siti, Muhammad Fikrie Hazami, Faizal Amir P. Nasution, and Henriko Tobing. "CGE Analysis of the Impact of the 2024 Minimum Wage Increase on the National Economy in Indonesia." Jurnal Ketenagakerjaan 19, no. 1 (2024): 32–47. http://dx.doi.org/10.47198/jnaker.v19i1.352.
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One of the minimum wage problems is caused by workers/laborers' needing to agree with the wage increase set. The minimum wage increase is still minimal compared to the high worker need. The Labor Organization president called the government to raise the provincial minimum wage (UMP) and district/city minimum wage (UMK) 2024 by 15%. This figure is obtained from the Decent Living Needs (KHL) survey results and other indicators such as inflation and economic growth. On the other hand, the minimum wage increase of 15% is considered by employers to be unrealistic, considering the condition of the national economy is hit by uncertainty. The government said that determining the minimum wage based on PP 36/2021 and considering the welfare of workers/laborers’ also looks at the Company's capabilities. This paper aims to see new macroeconomic and welfare conditions due to the increase in the minimum wage by 15%. Using the general equilibrium model of static computing (CGE), the analysis results show that an increase in the minimum wage leads to a decrease in demand for labor, especially in labor-intensive sectors. The increase in wages impacts increasing household income, thus indicating an increase in household welfare. However, inflationary pressures brought about by the minimum wage increase mask the increase in revenue, resulting in a decrease in household consumption budgets. This translates into a loss of net well-being, with a more significant impact on urban households than rural households. The output of most sectors, especially labor-intensive sectors, declined, but nominal GDP increased. The increase in nominal GDP is due to rising prices, not actual economic output.
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Menon, Nidhiya, and Yana van der Meulen Rodgers. "The Impact of the Minimum Wage on Male and Female Employment and Earnings in India." Asian Development Review 34, no. 1 (2017): 28–64. http://dx.doi.org/10.1162/adev_a_00080.
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This study examines how employment and wages for men and women respond to changes in the minimum wage in India, a country known for its extensive system of minimum wage regulations across states and industries. Using repeated cross sections of India's National Sample Survey Organization employment survey data for the period 1983–2008 merged with a newly created database of minimum wage rates, we find that, regardless of gender, minimum wages in urban areas have little to no impact on labor market outcomes. However, minimum wage rates increase earnings in the rural sector, especially for men, without any employment losses. Minimum wage rates also increase the residual gender wage gap, which may be explained by weaker compliance among firms that hire female workers.
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Adams, Zoe. "UNDERSTANDING THE MINIMUM WAGE: POLITICAL ECONOMY AND LEGAL FORM." Cambridge Law Journal 78, no. 1 (2019): 42–69. http://dx.doi.org/10.1017/s0008197318001009.
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AbstractThis article explores how the legal system has constructed, over time, the concept of the “wage”. Drawing on insights from classical political economy it contrasts a conception of the wage as the cost of social reproduction (a “social wage”), with the neoclassical notion of the wage as the price of a commodity (a “market wage”) that we see embedded in legal and political discourse today. Drawing on historical sources, it explores how these competing ideas of the wage have been reconstructed in juridical language in case law and legislation over time, exploring at the same time the impact of this process on the relationship between minimum wages and tax credits. This analysis is then used to shed light on the conception of the wage embedded in the National Minimum Wage Act 1998, providing a critical re-evaluation of the “National Living Wage” introduced in 2016.
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Healy, Joshua. "The Quest for Fairness in Australian Minimum Wages." Journal of Industrial Relations 53, no. 5 (2011): 662–80. http://dx.doi.org/10.1177/0022185611419618.
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The attainment of ‘fairness’ is widely regarded as a worthy goal of setting minimum wages, but opinions differ sharply over how to achieve it. This article examines how interpretations of fairness shaped the minimum wage decisions of the Australian Industrial Relations Commission between 1997 and 2005. It explores the Commission's approaches to three aspects of fairness in minimum wages: first, eligibility for increases; second, the form of increase; and third, the rate of increase over time. The Australian Industrial Relations Commission consistently gave minimum wage increases that were expressed in dollar values and applied to all federal awards. Its decisions delivered real wage increases for the lowest paid, but led to falls in real and relative wages for the majority of award-reliant workers. Fair Work Australia, the authority now responsible for setting minimum wages in the national system, appears apprehensive about parts of the Australian Industrial Relations Commission's legacy and has foreshadowed a different approach, particularly with respect to the form of adjustment.
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Hipkin, I. B. "A comparison of actual and minimum wages in the iron and steel industry (1978-1983)." South African Journal of Business Management 21, no. 1/2 (1990): 40–46. http://dx.doi.org/10.4102/sajbm.v21i1.915.
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In 1983 two million employees in South Africa were subject to minimum wages in terms of industrial council or wage board legislation. Studies of wage determination have been hampered by the lack of knowledge of actual wage rates. This paper compares the wage rates as laid down by the Industrial Council for the Iron. Steel, Engineering and Metallurgical Industry with the wages contained in a national salary survey, the latter representing 'actual' market wages. A job evaluation system has been used as the basis of comparison between the minimum and market rates. Both minimum and actual wages display similar characteristics in that the lowest levels have received the greatest (real) increases over the period under consideration. The upper skilled levels have seen a decrease in wages in real terms, with increases in actual wages being lower than the rates at which the minimum rates have increased. Explanations are sought both from an economic and a socio-political point of view.
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Hipkin, I. B. "A comparison of actual and minimum wages in the iron and steel industry (1978-1983)." South African Journal of Business Management 21, no. 1/2 (1990): 40–46. http://dx.doi.org/10.4102/sajbm.v21i1/2.915.
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In 1983 two million employees in South Africa were subject to minimum wages in terms of industrial council or wage board legislation. Studies of wage determination have been hampered by the lack of knowledge of actual wage rates. This paper compares the wage rates as laid down by the Industrial Council for the Iron. Steel, Engineering and Metallurgical Industry with the wages contained in a national salary survey, the latter representing 'actual' market wages. A job evaluation system has been used as the basis of comparison between the minimum and market rates. Both minimum and actual wages display similar characteristics in that the lowest levels have received the greatest (real) increases over the period under consideration. The upper skilled levels have seen a decrease in wages in real terms, with increases in actual wages being lower than the rates at which the minimum rates have increased. Explanations are sought both from an economic and a socio-political point of view.
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Card, David. "Using Regional Variation in Wages to Measure the Effects of the Federal Minimum Wage." ILR Review 46, no. 1 (1992): 22–37. http://dx.doi.org/10.1177/001979399204600103.
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The imposition of a national minimum wage standard provides a natural experiment in which the “treatment effect” varies across states depending on the fraction of workers initially earning less than the new minimum. The author exploits this fact to evaluate the effect of the April 1990 increase in the federal minimum wage on teenagers' wages, employment, and school enrollment. Comparisons of grouped and individual state data confirm that the rise in the minimum wage increased teenagers' wages. There is no evidence of corresponding losses in teenage employment or changes in teenage school enrollment.
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Ackerley, Nicky. "The national minimum wage." Veterinary Nursing Journal 35, no. 9-12 (2020): 366. http://dx.doi.org/10.1080/17415349.2020.1837474.
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Marchal, Sarah. "An EU minimum wage target for adequate in-work incomes?" European Journal of Social Security 22, no. 4 (2020): 452–66. http://dx.doi.org/10.1177/1388262720968118.
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This article summarises the arguments in favour of an EU initiative on minimum wages and highlights the steps that have been taken so far, focusing, in particular, on the First Stage consultation document prepared by the European Commission. Based on this consultation document and previous proposals, this article assesses some of the issues related to promoting an EU target minimum wage as a percentage of a national reference wage. Focusing on the adequacy of minimum wages for workers and their families, this article highlights first, the impact rather technical issues relating to the definition of the reference wage may have, and second, the importance of considering the interaction of the minimum wage with the broader tax benefit system in ensuring adequate in-work incomes. Whereas an EU initiative on minimum wages certainly has merit, these two caveats illustrate the need for a clear definition of what one wants to achieve by this initiative, and indicate that specific goals will require additional accompanying measures, such as a further monitoring of the net incomes of minimum wage earners
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Buszkiewicz, James H., Heather D. Hill, and Jennifer J. Otten. "Association of State Minimum Wage Rates and Health in Working-Age Adults Using the National Health Interview Survey." American Journal of Epidemiology 190, no. 1 (2020): 21–30. http://dx.doi.org/10.1093/aje/kwaa018.
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Abstract States adopt minimum wages to improve workers’ economic circumstances and well-being. Many studies, but not all, find evidence of health benefits from higher minimum wages. This study used a rigorous “triple difference” strategy to identify the associations between state minimum wages and adult obesity, body mass index (weight (kg)/height (m)2), hypertension, diabetes, fair or poor health, and serious psychological distress. National Health Interview Survey data (United States, 2008–2015) on adults aged 25–64 years (n = 131,430) were linked to state policies to estimate the prevalence odds ratio or mean difference in these outcomes associated with a $1 increase in current and 2-year lagged minimum wage among less-educated adults overall and by sex, race/ethnicity, and age. In contrast to prior studies, there was no association between current minimum wage and health; however, 2-year lagged minimum wage was positively associated with the likelihood of obesity (prevalence odds ratio = 1.08, 95% confidence interval: 1.00, 1.16) and with elevated body mass index (mean difference = 0.27, 95% confidence interval: 0.04, 0.49). In subgroup models, current and 2-year lagged minimum wage were associated with a higher likelihood of obesity among male and non-White or Hispanic adults. The associations with hypertension also varied by sex and the timing of the exposure.
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Rizal, Mohammad, and Arini Fitria Mustapita. "Effect of minimum wages on labor, welfare and economic growth: Evidence from East Java province." Optimum: Jurnal Ekonomi dan Pembangunan 14, no. 1 (2024): 10–19. http://dx.doi.org/10.12928/optimum.v14i1.8139.
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Wage issues are still a major concern, especially in Indonesia. The fact that wages constitute the most significant part of a person's income makes it an important indicator that reflects the level of welfare of a country. The minimum wage policy also serves as a protective tool for companies to maintain labor productivity. This research analyze the relationship between minimum wages and the number of labor, welfare, and economic growth in East Java. East Java has a significant role in the number of labor, prosperity, and economic growth, making a major contribution to the national economy with a substantial workforce. This research uses a quantitative approach. The data analysis technique uses canonical correlation statistical techniques. The data used taken from the annual reports of each city/district for 2018-2022, totaling 38 regions. The number of labor, welfare, and economic growth can be predicted through the city/district minimum wage. Meanwhile, individually, the minimum wage has the relationship with the number of labor because wages are the primary motivation of workers. In addition, the minimum wage is related to the welfare of workers in East Java, and the minimum wage is related to economic growth.
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Raut, Nirmal Kumar. "Setting National Minimum Wages for Nepal: A Need-Based Approach." Economic Journal of Nepal 42, no. 1-2 (2019): 17–33. http://dx.doi.org/10.3126/ejon.v42i1-2.35900.
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Method of setting minimum wages has been a debatable issue across the world. Various countries have adopted various methods of minimum wage determination process primarily formulas, government rate setting, union bargained rates, and rate recommended by an expert body. International Labour Organization (ILO) puts forth that the process of setting-up minimum wages should be scientific and accommodative of the needs of the workers and their families. Although minimum wages remains an utmost prority as a redistributive tool, studies shows that its fixation are mostly driven by political interest of the incumbent government and the interest of the private sector. Nepal is not an exception to this. This paper attempts to propose a need based method of setting minimum wages for Nepal. In addition to the food and non-food information, unlike previous need based approaches, this study uses housing information from the nationally representative household survey to derive the minimum wages for Nepal. The minimum monthly salary/wages at 2019/20 prices per household is estimated at NRs. 21799 and daily wages is estimated at NRs. 838.43.This study is expected to guide policy makers in setting evidence-based minimum wages for Nepal.
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Menegatti, Emanuele. "Challenging the EU Downward Pressure on National Wage Policy." International Journal of Comparative Labour Law and Industrial Relations 33, Issue 2 (2017): 195–219. http://dx.doi.org/10.54648/ijcl2017009.
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In-work poverty is increasingly becoming a problem of major concern for many EU Member States. In the opinion of many, a common European wage standard could constitute a desirable and effective solution. However, Article 153(5) TFEU excludes the EU from competence on pay, preventing the EU institutions from taking any binding action to that end, while attempts to address the issue by soft law or coordinated wage bargaining have proven to be ineffective. Even so, the exclusion of the EU institutions from exercising competence in the area of pay has not prevented them from acting within the existing framework of European economic governance to issue recommendations aimed at cutting or freezing national minimum wages and public-sector wages or keeping their growth in check (wage moderation). The article considers whether there is room to challenge the EU encroachment on national wage policies as a way to restore to national governments and the social partners the freedom to address the question of wages according to their own best judgment.
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Umkehrer, Matthias, and Philipp vom Berge. "Evaluating the Minimum-Wage Exemption of the Long-Term Unemployed in Germany." ILR Review 73, no. 5 (2020): 1095–118. http://dx.doi.org/10.1177/0019793920907036.
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The authors evaluate the exemption of long-term unemployed job seekers from Germany’s national minimum wage. Using linked survey and administrative micro data, they rely on a regression discontinuity design to identify the effects of the policy by comparing hiring rates, employment stability, and entry wages around the administrative threshold between short-term and long-term unemployment. They find that the exemption is very rarely used and that the minimum wage binds irrespective of past unemployment duration. While the minimum wage led to a relative rise in entry wages for the long-term unemployed compared to the short-term unemployed, the authors do not detect a relative deterioration in their employment prospects.
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Handriyanto, Timbul, and Mahayoni Mahayoni. "DAMPAK IMPLEMENTASI FORMULA UPAH MINIMUM SESUAI PERATURAN PEMERINTAH NOMOR 78 TAHUN 2015 TENTANG PENGUPAHAN TERHADAP KESEJAHTERAAN PEKERJA DI KABUPATEN BEKASI." Problematika Hukum 4, no. 2 (2021): 147. http://dx.doi.org/10.33021/ph.v4i2.1723.
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The Constitution states that every citizen has the right to work and a decent living for humanity, reinforced by the Manpower Act that every worker/laborer has the right to earn an income that fulfills a decent living for humanity. In achieving this goal, the state establishes a "Minimum Wage" based on a survey of the basic needs of a single worker for one month called the Decent Living Needs (KHL). The Government issued Government Regulation 78 of 2015 concerning Wages which regulates the formula for setting minimum wages based on inflation and national economic growth, the components of the decent living necessities that were previously used as a basis for stipulations are no longer used. This type of research is normative juridical legal research, using the IRAC analysis approach (issue, rule, analysis, conclusion) to draw a conclusion. Data and data sources used are primary data and secondary data with the procedure of collecting literature and field studies. From the results of the study the Impact of the Implementation of the Minimum Wage Formula in Accordance with Government Regulation Number 78 Year 2015 Regarding Wages Against Workers' Welfare is the average increase in wages in Bekasi district, five years before and after the formula was put in place experienced a significant decrease. The minimum wage, which was five years earlier above the KHL, is now below the KHL. The formula also makes wage increases as a percentage flat, resulting in wider regional wage disparities. The problems studied are: 1. The mechanism for setting minimum wages before and after the birth of PP 78 of 2015 concerning wages. 2. The impact of the implementation of the minimum wage formula in accordance with PP 78 of 2015 concerning wages for workers' welfare. Keywords: Minimum Wages, PP 78/2015 Formula, and Living Needs (KHL).
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Lloyd, Reg. "The National Minimum Wage Act?" In Practice 21, no. 9 (1999): 542–44. http://dx.doi.org/10.1136/inpract.21.9.542.
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Metcalf, David. "The British National Minimum Wage." British Journal of Industrial Relations 37, no. 2 (1999): 171–201. http://dx.doi.org/10.1111/1467-8543.00124.
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Croucher, Richard, and Geoff White. "ENFORCING A NATIONAL MINIMUM WAGE." Policy Studies 28, no. 2 (2007): 145–61. http://dx.doi.org/10.1080/01442870701309080.
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Tajuddin, Sheikh Ahmad Faiz Sheikh Ahmad, Suriyani Muhamad, Fauziah Abu Hasan, and Nor Fatimah Che Sulaiman. "Productivity effect of minimum wage in the manufacturing sector of Malaysia." Asian Journal of Economic Modelling 11, no. 2 (2023): 46–55. http://dx.doi.org/10.55493/5009.v11i2.4808.
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This study measured the effectiveness of Malaysia's minimum wage by assessing the effect of minimum wage on productivity in the Malaysian manufacturing sector. Panel data covering a 10-year period were collected from 297 manufacturing firms in Peninsular Malaysia that were registered with the Federation of Malaysian Manufacturers (FMM) and analysed using static panel data regression to examine the effect of minimum wage on productivity. Panel data analysis revealed that the study's random effect model (REM) was the best model to describe the relationship between the minimum wage and productivity. The study found that the minimum wage improved labour productivity. Therefore, the minimum wage policy that was introduced in Malaysia under the Minimum Wage Order 2012 increased firms’ productivity. Increasing workers' wages motivated them to be more productive. This study's results are useful in highlighting to regulators, policymakers, manufacturing associations, employers, and workers the effects of the minimum wage. The implications of the findings will help improve the national minimum wage policy.
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Wescher, Lance, Travis Hutchinson, and Anna Rannou. "Minimum Wages, Employment, and College Enrollment." American Economist 64, no. 1 (2018): 3–18. http://dx.doi.org/10.1177/0569434518787485.
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Most studies of the effects of minimum wage laws look exclusively at the labor market. This article investigates the less-researched topic of the effects of a minimum wage increase on enrollment in undergraduate higher education institutions in the United States. With a higher opportunity cost of pursuing an education given a higher minimum wage, potential students may opt to work instead of attend college. Conversely, if an increase in the minimum wage raises the unemployment rate for young workers, more people may enroll in college, as they are unable to find employment. Using restricted geocode variables and panel data from National Longitudinal Survey of Youth (NLSY97) over a period of time in which every state saw an increase in its effective minimum wage, we find that higher minimum wages do correspond to lower levels of college enrollment. We use a multinomial probit model to examine how tradeoffs are made between employment and college enrollment. Finally, we examine the transition path between college enrollment and employment. JEL Classification: I23, J24, and E24.
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Lukyanova, A. L. "Centralization and regionalization of minimum wages: Evidence from Russia." Voprosy Ekonomiki, no. 1 (December 30, 2022): 86–104. http://dx.doi.org/10.32609/0042-8736-2023-1-86-104.
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The paper investigates recent developments in the minimum wage policy in Russia. We focus on the effects of two interventions: (1) the decision of the Russian Constitutional Court of December 7, 2017 to exclude mandatory regional compensation payments and Northern allowances from the minimum wage; (2) the decision to equate the national minimum wage with the subsistence level through two hikes in early 2018. Our empirical analysis is based on the data for 2016Q1—2022Q1, covering the period before and after the interventions. The decision of the Constitutional Court introduced an additional tier of minimum wage setting. Formerly, minimum wages were regionalized in a decentralizedway via tripartite collective bargaining at the regional level. Since 2018, this approach has been supplemented with the centralized regionalization via mandatory regional coefficients. The decision to equate the minimum wage with the subsistence level also contributed to the increase in centralization as it reduced the room the social partners to set regional minima above the federal level. As a result, the regionalization via regional tripartite agreements has basically ceased to exist, although before 2018 it showed a decent ability to adapt to local conditions. Policy developments in 2017—2018 reduced the interregional variation in the bindingness and purchasingpower of minimum wages. However, it might have happened at the expense of economically weak regions. In poor regions, the ratio of the minimum wage to the average wage has exceeded 50%, which exacerbates the risks of disemployment and welfare losses in those regions.
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Endah Hiswati, Marselina, Achmad Fanany Onnilita Gaffar, Rihartanto ., and Haviluddin . "Minimum wage prediction based on K-Mean clustering using neural based optimized Minkowski Distance Weighting." International Journal of Engineering & Technology 7, no. 2.2 (2018): 90. http://dx.doi.org/10.14419/ijet.v7i2.2.12741.
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Minimum Wage is a minimum standard used by employers to provide wages to workers in their business environment. The national minimum wage is the average of the provincial minimum wage. There are many factors need to be considered to set a minimum wage. The aim of this study is to predict the minimum wage based on K-Mean clustering concept. The Minkowski Distance Weighting (MDW) then used to estimate a value at the observation point in a cluster by using a linear combination of values of all cluster members around observation point mapped in 3-dimensional Cartesian coordinates. The prediction result by MDW then optimized by Artificial Neural Network Back Propagation (ANN-BP) to obtain a smaller Mean Absolute Percentage Error (MAPE). The net structure which already trained then used to predict the minimum wage for next year.
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Majchrowska, Aleksandra, and Paweł Strawiński. "The evolution of the minimum wage in Poland and its consequences on labour market." Bank i Kredyt Vol. 55, No. 1 (2024): 55–74. http://dx.doi.org/10.5604/01.3001.0054.5692.
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Poland is one of the 22 European Union members with national minimum wage legislation. The minimum wage level in Poland is legislated by the Minimum Wage Act of 2002 as amended. The aim of the study is twofold: first, to show the evolution of the minimum wage level in Poland with respect to other EU countries in the period of 2003–2023, second, to use the review of the literature as a research tool to find out whether there is a consensus on the impact of minimum wage changes on various labour market outcomes in Poland, i.e. the level of employment, wages, profits, or prices. To the best of our knowledge it is the first study of this kind for Poland.
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Freyssinet, Jacques. "Au Royaume-Uni, du National Minimum Wage au National Living Wage." La Revue de l'Ires 100, no. 1 (2020): 67. http://dx.doi.org/10.3917/rdli.100.0067.
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Bomba, Katarzyna. "Minimum Wage Fixing Mechanisms in the EU Member States: A Comparative Overview in the Light of the Draft Directive on Adequate Minimum Wages." Journal of the University of Latvia. Law 15 (November 16, 2022): 137–53. http://dx.doi.org/10.22364/jull.15.09.
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This paper focuses on a comparative legal overview of the minimum wage in Austria, France, Germany, Italy, Poland, Portugal, Romania and Spain. The author uses this context to discuss the significance of constitutions, statutes and collective bargaining agreements. Attention is drawn to the amount of detail in relevant constitutional provisions, the reasons for the discrepancies, as well as to the correlation between the way in which the minimum wage is regulated in the constitution and the way it is regulated by way of statute or collective bargaining agreement. The influence of international and European legal acts on the norms adopted in particular states is also assessed. Next, the structure of various national minimum wage fixing mechanisms is analysed in an attempt to indicate regularities in their formation. The paper refers to the draft Directive on adequate minimum wages in the European Union and provides an assessment of its potential impact on domestic legal systems. Further, the article evaluates national minimum wage fixing mechanisms from the perspective of their compatibility with the requirements introduced by the draft Directive.
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Haya, Tasya Fadya, Ivano Armando, and Tiara Maharani. "THE INFLUENCE OF NATIONAL LEGAL POLITICS ON THE MINIMUM WAGE SYSTEM LABOR LAW PERSPECTIVE." Constitutional Law Society 3, no. 1 (2024): 1–13. http://dx.doi.org/10.36448/cls.v3i1.66.
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The government has the authority to determine wage policies relating to the relationship between workers and employers and provide protection to workers, including through minimum wage instruments, which are regulated through the Labor Law and its implementing regulations. The formation of statutory regulations is formed through a political-legal process that cannot be separated from the influence between the parties with an interest in it. If you look at the current condition of workers in Indonesia, they are still very weak and marginalized because the wages they receive are still relatively unable to keep up with the increasing needs for life. Through this article, the author wants to examine how national legal politics influence Indonesian employment system policies and what factors influence the calculation of minimum wages. This research is a type of doctrinal legal research using normative juridical methods with a descriptive analytical approach and analyzed qualitatively, by examining the laws that apply in Indonesia through statutory regulations related to workers' wages. The results of this research show, firstly, that legal politics influences Indonesian labor regulations. It can be seen that labor regulations not only regulate workers and employers but also cover issues of the economic system and political system. Second, minimum wages are determined based on economic and employment conditions with calculations that focus on economic variables and certain indices symbolized by alpha. Determining minimum wages as a policy line aims to create decent living needs for workers and their families in order to protect workers' rights and avoid arbitrary actions by companies, as well as encouraging economic growth in each region.
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Vally Senasi, Samihah Khalil @ Halim, and Balakrishnan Parasuraman. "Minimum Wage Policy: Is There Any Impact on Low Skilled Workers in Electrical and Electronics Companies in Malaysia?" International Journal of Business and Society 22, no. 1 (2021): 422–30. http://dx.doi.org/10.33736/ijbs.3186.2021.
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Wage are the greatest pushing factor for many workers to work and positively relates to employee life satisfaction. Meanwhile, fringe benefits improve the skills and knowledge of workers and enhance the organization’s reputation. Minimum wage policies around the world uphold the principle to provide a basic living wage for their workers. Nevertheless, the impact of national minimum wage policy on Malaysian employees, in particular, was the least explored since enacted into law in 2012. This study examines the minimum- wage impact on low-level skilled workers in the electrical and electronics industry in Malaysia. Minimum wage can have an effect on labor productivity and fringe benefits, particularly training, allowances, and insurance, have become important research topics. As such, this research discusses the effect of minimum wages on labor productivity and fringe benefits of employees. A semi-structured survey questionnaire was distributed to 600 employees in electrical and electronics firms in Penang and Kulim Industrial Zones. Data from 432 questionnaires were quantitatively analyzed using Exploratory Data Analysis (EDA). The findings suggest that employers should make some adjustments in administering the wage scale due to the implementation of minimum wage national policy that has impacted firms’ costs and incomes. The results also found that the minimum wage affects labor productivity and wage differences among workers. Meanwhile, the minimum wage does not adversely affect the adjustments to the fringe benefits, except for the provision of training. This study recommends more strategic plans and negotiations between stakeholders on wage and fringe benefits that would warrant continuous positive effects for both workers and employers.
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Pritadrajati, Dyah Savitri. "DETERMINANTS OF SCHOOL ENROLMENT IN INDONESIA: THE ROLE OF MINIMUM WAGE." Buletin Ekonomi Moneter dan Perbankan 24, no. 2 (2021): 181–204. http://dx.doi.org/10.21098/bemp.v24i2.1484.
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This paper investigates the role of minimum wages in determining school enrolment (educational investment) in Indonesia using the National Socioeconomic Survey (Susenas). It finds that minimum wage legislation has a negative and significant substitution effect on educational investment. Individuals are more likely to drop out of senior secondary school as a result of a minimum wage legislation. Even though the response among low-income households is positive, this result may be generated by a fall in the probability of obtaining low-skilled employment, which offset the substitution effect.
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Caraway, Teri L., Michele Ford, and Oanh K. Nguyen. "Politicizing the Minimum Wage: Wage Councils, Worker Mobilization, and Local Elections in Indonesia." Politics & Society 47, no. 2 (2019): 251–76. http://dx.doi.org/10.1177/0032329219838917.
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Indonesia’s weak labor movement transformed local wage councils from institutions of wage restraint into institutions that delivered generous wage increases. This article argues that the arrival of direct elections created an opportunity for unions to leverage elections to alter the balance of power on the wage councils. Activating that leverage required increased contentiousness and coordination among unions. As unions mobilized around wages, conflict with capital intensified and produced disruptive protests that led incumbents to side with workers. Unions also developed innovative tactics to sustain momentum in nonelection years. As unions turned the wage councils in their favor, employers fought back by shifting the scale of the conflict to the national level; the result was the recentralization of wage setting and more modest increases. In a global context of ever weakening organized labor, the Indonesian case shows how weak unions can gain power by mobilizing politically at the local level.
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Dickens, Richard, and Alan Manning. "Has the national minimum wage reduced UK wage inequality?" Journal of the Royal Statistical Society: Series A (Statistics in Society) 167, no. 4 (2004): 613–26. http://dx.doi.org/10.1111/j.1467-985x.2004.aei2.x.
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Shevchuk, Vladyslava. "ANALYSIS OF WAGE LEVELS DYNAMICS IN UKRAINE AND THE EU COUNTRIES AS A COMPONENT RESEARCH OF THE LABOUR MARKET CONDITIONS." Collection of scientific research papers State University of Infrastructure and Technologies Section “Economics and Management”, no. 53 (May 26, 2023): 119–27. http://dx.doi.org/10.32703/2664-2964-2023-53-119-127.
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At the present stage of deepening the processes of Ukraine's European integration, studies of the state and prospects of development of the labour markets of Ukraine and the European Union countries are becoming increasingly relevant, since in recent years, according to some indicators of the labour market functioning, there has been a process of their separation (structural divergence), which has disintegration potential. In particular, one of the structural factors of their divergence is the imbalance in the field of remuneration.The article is devoted to the study and analysis of the dynamics of wages in Ukraine and the European Union as one of the components of the labour market research process. To achieve this goal, the author used a number of general scientific andspecial research methods interrelated and consistently applied in the work: the method of abstraction, theoretical generalisation, analysis and synthesis, induction, graphical and analytical method (graphs of dynamic changes in indicators).Based on a review of the minimum wages in the European Union, it is determined that in 2022 the EU countries will be divided into three groups: with a national minimum wage of more than EUR 1,500 per month; with a national minimum wage above EUR 1,000 but below EUR 1,500 per month; and with a national minimum wage below EUR 1,000 per month.It is established that the EU labour market has gender and cross-country imbalances in remuneration, while the Ukrainian labour market has gender and regional imbalances. It is determined that there are a number of global problems in the labour market. In the area of remuneration, these include low levels of minimum and average wages, excessive differentiation in remuneration in different regions and sectors of the economy, high and growing wage arrears, lack of connection between wages and the level of employee's qualifications and performance, and the existence of shadow remuneration schemes. The labour market conditions in Ukraine are of a falling type, as they are characterised by an excess of demand over supply (a decrease in vacancies and an increase in the number of unemployed) and a decrease in market prices (the real wage index)
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Conklin, Annalijn I., Ninez A. Ponce, Catherine M. Crespi, John Frank, Arijit Nandi, and Jody Heymann. "Economic policy and the double burden of malnutrition: cross-national longitudinal analysis of minimum wage and women’s underweight and obesity." Public Health Nutrition 21, no. 5 (2017): 940–47. http://dx.doi.org/10.1017/s1368980017003433.
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AbstractObjectiveTo examine changes in minimum wage associated with changes in women’s weight status.DesignLongitudinal study of legislated minimum wage levels (per month, purchasing power parity-adjusted, 2011 constant US dollar values) linked to anthropometric and sociodemographic data from multiple Demographic and Health Surveys (2000–2014). Separate multilevel models estimated associations of a $10 increase in monthly minimum wage with the rate of change in underweight and obesity, conditioning on individual and country confounders. Post-estimation analysis computed predicted mean probabilities of being underweight or obese associated with higher levels of minimum wage at study start and end.SettingTwenty-four low-income countries.SubjectsAdult non-pregnant women (n150 796).ResultsHigher minimum wages were associated (OR; 95 % CI) with reduced underweight in women (0·986; 0·977, 0·995); a decrease that accelerated over time (P-interaction=0·025). Increasing minimum wage was associated with higher obesity (1·019; 1·008, 1·030), but did not alter the rate of increase in obesity prevalence (P-interaction=0·8). A $10 rise in monthly minimum wage was associated (prevalence difference; 95 % CI) with an average decrease of about 0·14 percentage points (−0·14; −0·23, −0·05) for underweight and an increase of about 0·1 percentage points (0·12; 0·04, 0·20) for obesity.ConclusionsThe present longitudinal multi-country study showed that a $10 rise in monthly minimum wage significantly accelerated the decline in women’s underweight prevalence, but had no association with the pace of growth in obesity prevalence. Thus, modest rises in minimum wage may be beneficial for addressing the protracted underweight problem in poor countries, especially South Asia and parts of Africa.
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Sayers Bain, George. "The National Minimum Wage: further reflections." Employee Relations 21, no. 1 (1999): 15–28. http://dx.doi.org/10.1108/01425459910252966.
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Piper, Jason. "National minimum wage: paying the price." Nursing and Residential Care 14, no. 10 (2012): 551–53. http://dx.doi.org/10.12968/nrec.2012.14.10.551.
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Petrakis, Emmanuel, and Minas Vlassis. "The endogenous national minimum wage institution." Journal of Macroeconomics 27, no. 4 (2005): 747–62. http://dx.doi.org/10.1016/j.jmacro.2003.10.004.
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Bryson, Alex, and Michael White. "Migrants and Low-Paid Employment in British Workplaces." Work, Employment and Society 33, no. 5 (2019): 759–76. http://dx.doi.org/10.1177/0950017019832509.
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Using nationally representative workplace data for Britain, we identify where migrants work and examine the partial correlation between workplace wages and whether migrants are employed at a workplace. Three-in-ten workplaces with five or more employees employ migrant workers, with the probability rising substantially with workplace size. We find the bottom quartile of the log earnings distribution is 4–5% lower in workplaces employing migrants, ceteris paribus. However, the effect is confined to workplaces set up before the introduction of the National Minimum Wage (NMW) in the late 1990s, consistent with the proposition that minimum wage regulation limits employers’ propensity to pay low wages in the presence of migrant workers.
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Neunsinger, Silke. "Translocal Activism and the Implementation of Equal Remuneration for Men and Women: The Case of the South African Textile Industry, 1980–1987." International Review of Social History 64, no. 1 (2019): 37–72. http://dx.doi.org/10.1017/s0020859019000166.
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AbstractThe struggle by women workers has largely been overlooked in the historiography of trade unions in South Africa during apartheid. This article analyses the strategies of the National Union of Textile Workers (NUTW) to end wage discrimination against women as part of the struggle against poverty wages in the South African textile industry during the last years of apartheid, c.1980 to 1987. The first South African equal pay legislation came into force in 1981, covering the minimum wages of just a small number of the workforce; it was not until 1984 that legislation set minimum wages for all workers. Before the legal reform, new domestic and foreign political opportunities helped the NUTW to create new mobilization structures and offered possibilities to connect levels of scale and make local action visible at home and abroad. Global framing of wage equality combined with a translocal repertoire was used in the cases of multinational companies to make relevant connections between levels of scale (international, transnational, national, and local) to add to the visibility of the violations. After the reform of labour legislation in South Africa, the union made reference to domestic legislation, but translocal activism remained important in bringing foreign companies to the local negotiating table. Drawing on these cases, the NUTW developed a national strategy to make wage setting more transparent across the entire industry, adding to the visibility of all forms of wage discrimination.
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Slaveski, Trajko, and Kristijan Kozheski. "Labour Productivity, Wages, and Inflation: Evidence from Selected Central and South-East European Countries." Journal of Eurasian Economies 3, no. 1 (2024): 1–16. http://dx.doi.org/10.36880/j03.1.0130.
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The relationship between inflation, worker wages, and labour productivity growth has been a widely discussed topic among academics in recent decades. Labour productivity is a critical component for maintaining and improving the competitiveness of national economies and establishing sustainable economic growth. The increase in labour productivity serves as the foundation for increasing workers' wages, thereby enhancing their purchasing power and overall well-being. However, empirical data from Southeast European countries indicate that labour productivity growth rates have been insufficient to enable catch-up with their Western European counterparts. Additionally, these countries have experienced significant inflation rates in recent years, resulting in a notable decline in real wages for workers. Therefore, the gap between labour productivity and workers' wages has not only failed to diminish but has, in fact, widened over the past few decades.
 The primary objective of this paper is to examine the interrelationships among labour productivity, workers' wages, and inflation in Central and Southeast European countries, specifically the Balkan EU countries, Balkan non-EU countries, and the Visegrád group of countries. The findings reveal a short-term causality among inflation, labour productivity, and the statutory minimum wage in these three groups of countries. Furthermore, there is evidence of a bidirectional causal relationship running from the minimum wage and inflation to labour productivity, and vice versa, in the short term. Additionally, the introduction of a minimum wage shock significantly influences the future values of labour productivity and inflation. The adverse effects of an externally induced increase in the statutory minimum wage are particularly noticeable in Western Balkan non-EU countries.
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Shirokova, L. N., V. A. Skovpen’, and V. P. Starokozheva. "REFLECTION OF NATIONAL DEVELOPMENT GOALS OF THE RUSSIAN FEDERATION IN GENERAL AND INDUSTRY AGREEMENTS." Social & labor researches 41, no. 4 (2020): 94–110. http://dx.doi.org/10.34022/2658-3712-2020-41-4-94-110.
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Sectoral agreements are an important link in the system of social partnership, since the stipulated obligations of the parties increase the responsibility of employers for the employee health, decent wages and their timely indexing, as well as assistance to working women with children, support for workers to purchase housing, employment of youth, etc. others. The aim of the article is to analyze the content of the General and sectoral agreements in force as of 2020, in connection with the included national goals defined in the Decree of the President of the Russian Federation of July 21, 2020 No. 474 and characterizing their achievement of target indicators. The authors studied the practice of setting the minimum wage in industry agreements. They revealed that guarantees for minimum wage are applied in 43 sectoral agreements out of 61. The majority of sectoral agreements do not consider the decisions of the Constitutional Court of the Russian Federation about excluding individual compensation payments in the minimum wage. Also, less than half of the sectoral agreements include the guarantee for the tariff part of wages: it was only in 24 out of 61 sectoral agreements, while in 17 of them it was at the level of 60-70%. Due to the fact that in Article 134 of the Labor Code of the Russian Federation, the subject to indexation is not specified - the wage fund, wages or the tariff part of it - industry agreements present different options for indexing wages at rates higher than inflation. The authors analyzed sectoral agreements on the application of compensation and incentive payments, measures to improve the housing conditions of workers (payment of compensation, provision of loans / loans on favorable terms), as well as assistance to young workers (up to 35 years old) to purchase housing and set up a household. The paper considers solving these issues in the sectoral agreements of Germany and France. The conclusion is that the sectoral agreements provide for a significant list of guarantees that contribute to the implementation of the Decree of the President of the Russian Federation "On the national development goals of the Russian Federation for the period up to 2030".
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Chapman, Leah Elizabeth, Seth A. Berkowitz, Alice Ammerman, et al. "Association between hourly wages and dietary intake after the first phase of implementation of the Minneapolis minimum wage ordinance." Public Health Nutrition 24, no. 11 (2021): 3552–65. http://dx.doi.org/10.1017/s1368980021000707.
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AbstractObjective:In 2018, Minneapolis began phased implementation of an ordinance to increase the local minimum wage to $15/h. We sought to determine whether the first phase of implementation was associated with changes in frequency of consumption of fruits and vegetables (F&V), whole-grain-rich foods, and foods high in added sugars among low-wage workers.Design:Natural experiment.Setting:The Wages Study is a prospective cohort study of 974 low-wage workers followed throughout the phased implementation of the ordinance (2018–2022). We used difference-in-difference analysis to compare outcomes among workers in Minneapolis, Minnesota, to those in a comparison city (Raleigh, North Carolina). We assessed wages using participants’ pay stubs and dietary intake using the National Cancer Institute Dietary Screener Questionnaire.Participants:Analyses use the first two waves of Wages data (2018 (baseline), 2019) and includes 267 and 336 low-wage workers in Minneapolis and Raleigh, respectively.Results:After the first phase of implementation, wages increased in both cities, but the increase was $0·84 greater in Minneapolis (P = 0·02). However, the first phase of the policy’s implementation was not associated with changes in daily frequency of consumption of F&V (IRR = 1·03, 95 % CI: 0·86, 1·24, P = 0·73), whole-grain-rich foods (IRR = 1·23, 95 % CI: 0·89, 1·70, P = 0·20), or foods high in added sugars (IRR = 1·13, 95 % CI: 0·86, 1·47, P = 0·38) among workers in Minneapolis compared to Raleigh.Conclusions:The first phase of implementation of the Minneapolis minimum wage policy was associated with increased wages, but not with changes in dietary intake. Future research should examine whether full implementation is associated dietary changes.
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Nyklewicz, Krzysztof. "Minimum Wage and Its Impact on the Job Market in Germany." Olsztyn Economic Journal 11, no. 2 (2016): 151–63. http://dx.doi.org/10.31648/oej.2917.
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The introduction of the national minimum wage in Germany in 2015 is an important yet controversial instrument of labour market policy. This paper represents an attempt to define the scope of influence it has on companies and employees in respective branches of economy (accommodation and food services business, retail trade, manufacture of food products, transportation and warehouse management). In order to accomplish it the method of analysis and criticism of literature has been applied. It allowed to conduct an evaluation of the discussed dependence.The preliminary findings indicate that interference is especially high in the low wages sector. To show the consequences the national minimum wage has on the job market, positive changes in employment and unemployment levels in the given period (the increase in the first and the drop in the second one) were presented. This meant that the fears concerning a few thousand job losses, as a result of introducing the minimum wage, were unjustified. In this paper articles and analyses published by German research institutes were used. The statistical data comes from the databases of these institutes and of the Federal Employment Agency. The research period considers the years 2014-2015, specifically one year before and half a year after the introduction of the minimum wage in Germany with the aim of highlighting the changes in the employment size caused by the minimum wage.
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Katovich, Erik S., and Alexandre Gori Maia. "The relation between labor productivity and wages in Brazil:." Nova Economia 28, no. 1 (2018): 7–38. http://dx.doi.org/10.1590/0103-6351/3943.
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Abstract: Labor productivity is a crucial long-run determinant of real wages. Nonetheless, wage and productivity dynamics often diverge in practice due to a range of economic and institutional factors. This study analyzes the relation between the dynamics of labor productivity and wages in Brazil from 1996 to 2014, and adopts a sectoral perspective to account for divergent trends among economic sectors. Analyses are based on pooled data drawn from the National Accounts and the Pesquisa Nacional por Amostra de Domicílios, and hierarchical data models are estimated to assess the impacts of state- and sector-level factors on individuals’ wages. Results indicate that productivity is significantly positively associated with wage levels for all economic sectors, but that institutional factors such as labor formalization and minimum wage exert equally significant impacts, suggesting that wage growth over the 1996-2014 period was as much the result of institutional changes as of transformation of Brazil’s productive structure.
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Sitompul, Thomson, and Yansen Simangunsong. "The Analysis of the Impact of GDP, FDI, Minimum Wage on Employment in Indonesia." International Journal of Management, Entrepreneurship, Social Science and Humanities 2, no. 2 (2019): 53–62. http://dx.doi.org/10.31098/ijmesh.v2i2.17.
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Unlike the previous study in determinant of labor absorption, which focused on economic sector and took up regional scope, this paper examines the impact of Gross Domestic Product, Foreign Direct Investment and Minimum Wages on labor absorption in Indonesia which take the national scope and aggregate labor by using secondary series of time series data (1990-2015). This study contributes to the limited literature on aggregate employment and national scope as the impact of the minimum wage, GDP, FDI in developing countries, especially in Indonesia. By using multiple linear regression models, surprisingly, we find that GDP and Minimum Wages have a positive and significant impact to increase employment while FDI does not affect employment in Indonesia.
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Yang, Juan, and Morley Gunderson. "Minimum wage impacts on wages, employment and hours in China." International Journal of Manpower 41, no. 2 (2019): 207–19. http://dx.doi.org/10.1108/ijm-10-2018-0361.
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Purpose The purpose of this paper is to estimate the causal effect of minimum wages (MWs) on the wages, employment and hours of migrant workers in China, and to show their inter-relatedness and how employers can offset some of the costs through subtle adjustments. This paper also illustrates the importance of disaggregating by region and sex. Design/methodology/approach Causal estimates are provided through difference-in-differences (DID) analysis, and robustness checks through propensity score matching. The analysis is based on micro data at the individual level from the household survey on migrant workers by the National Population and Family Planning Commission, combined with macro data regarding municipalities’ population, GDP and employment information based on the China Economic Information Network database. Findings MW increases for those paid by the month increased the earnings of both low-wage males and females. However, males tend not to experience an adverse employment effect because part of the cost increase is offset by employers increasing their monthly hours of work. Hours of work do not increase for females, so they experience an adverse employment effect. This highlights the importance of examining cost offsets such as increases in hours of work, as well as analyzing effects separately for males and females. Research limitations/implications The reason behind why employers offset some of the cost increase for males paid by the month by increasing their hours of work, but this cost-offsetting adjustment does not occur for females is uncertain. Social implications For workers paid by the month, employers can offset some of the cost increase by increasing their hours of work, leading to no reductions in employment. But this adjustment occurs only for males. Hours are not increased for females, but they experience reductions in employment. Clearly, MW increases have adverse effects either in the form of employment reductions (for females) or increases in hours of work for the same monthly pay (for males). Originality/value This paper provides causal estimates through DID analysis and robustness checks through Propensity Score Matching, and also indicates how employers can offset the cost of MW increases by increasing hours for those paid by the month, resulting in no adverse employment effect for such workers, but an adverse employment effect when such an adjustment does not occur.
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Nafiah, Izzun. "Minimum wages and the fate of Indonesian young workers." Jurnal Ekonomi Pembangunan 18, no. 2 (2020): 105–18. http://dx.doi.org/10.29259/jep.v18i2.11929.
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Government policies that are directly related to the relationship between workers and companies are determining minimum wages. The effect of this minimum wage becomes more varied for developing countries with large populations such as Indonesia. Young workers have sensitive effect to fluctuation of the minimum wage policy, whereas the percentage of Indonesia young workers is more than 20 percent of the total workforce in 2015-2019. Therefore, the aim of this research is to analyze the effect of minimum wage policies on the status of young workers in Indonesia using quantitative data from the National Labour Force Survey (Sakernas) 2015-2019 with the multinomial logit analysis method. The results of this study are an increase in the minimum wage decreases the probability of young workers to have status as paid workers in the covered sector. In urban areas, an increase in the minimum wage increases the probability of young male workers being unemployed and decreases the probability being self-employed. On the other hand, an increase in the minimum wage causes female urban workers reducing the probability of being unemployed and increasing the probability of them being self-employed. Therefore, the minimum wage policy must be balanced with strengthen the education and training and also consider policies that increase youth labor market opportunities but do not increase employer costs for young workers. On the other hand, the government must be continuous to improve policies that support the progress of informal sector, for example in terms of providing capital, reducing loan interest rates, etc.