TY - JOUR
T1 - Minimum wages and poverty in a developing country: Simulations from Indonesia's household survey
AU - Manning, Christopher
AU - Bird, Kelly
PY - 2008
Y1 - 2008
N2 - This study focuses on minimum wages, income distribution, and poverty, taking Indonesia as a case study. A simulation approach assesses who benefits and who pays for minimum wage increases. Among the poor, a minimum wages increase boosts net incomes for 21% of the households, while it results in net losses to 79% of the households. The impact is slightly less severe when there are job losses. Although minimum wage increases are mildly progressive (the non-poor pay a higher share of the costs), they are unlikely to be an effective antipoverty instrument in developing countries like Indonesia.
AB - This study focuses on minimum wages, income distribution, and poverty, taking Indonesia as a case study. A simulation approach assesses who benefits and who pays for minimum wage increases. Among the poor, a minimum wages increase boosts net incomes for 21% of the households, while it results in net losses to 79% of the households. The impact is slightly less severe when there are job losses. Although minimum wage increases are mildly progressive (the non-poor pay a higher share of the costs), they are unlikely to be an effective antipoverty instrument in developing countries like Indonesia.
U2 - 10.1016/j.worlddev.2007.05.012
DO - 10.1016/j.worlddev.2007.05.012
M3 - Article
SN - 1873-5991
VL - 36
SP - 916
EP - 933
JO - World Development
JF - World Development
IS - 5
ER -