Do minimum wages reduce employment in developing countries? A survey and exploration of conflicting evidence

B-Tier
Journal: World Development
Year: 2021
Volume: 137
Issue: C

Authors (2)

Neumark, David (University of California-Irvin...) Munguía Corella, Luis Felipe (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Evidence from studies of the employment effects of minimum wages in developing countries is mixed. One interpretation is that there is simply no clear evidence of disemployment effects in developing countries. Instead, however, we find evidence that the heterogeneity is systematic, with estimated effects more consistently negative in studies with relatively more features for which institutional factors and the competitive model more strongly predict negative effects. These features include whether studies: (i) focus on vulnerable workers; (ii) use data for the formal sector; (iii) cover countries where minimum wage laws are strongly enforced; and (iv) estimate effects for countries and periods with binding minimum wages.

Technical Details

RePEc Handle
repec:eee:wdevel:v:137:y:2021:i:c:s0305750x20302928
Journal Field
Development
Author Count
2
Added to Database
2026-01-26