The Impact of the 1896 Factory and Shops Act on the Labor Market of Victoria, Australia

This article examines the effects of the Victorian Factory and Shops Act, the first minimum wage law in Australia. The Act differed from modern minimum wage laws in that it established Special Boards, which set trade-specific minimum wage schedules. We use trade-level data on average wages and employment by gender and age to examine the effects of minimum wages. Although the minimum wages were binding, we find that the effects on employment were modest, at best. We speculate that this was because the Special Boards, which were comprised of industry insiders, closely matched the labor market for their trades.

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Book Reviews

Journal of Economic Literature ◽

10.1257/jel.51.2.544.r8 ◽

2013 ◽

Vol 51 (2) ◽

pp. 558-560

Keyword(s):

Labor Market ◽

Minimum Wage ◽

Job Search ◽

Labor Market Outcomes ◽

Minimum Wages ◽

New York University ◽

Market Outcomes ◽

Welfare Impacts ◽

Wage Effects ◽

The Impact

Etienne Wasmer of Sciences Po and LIEPP reviews, “The Minimum Wage and Labor Market Outcomes” by Christopher J. Flinn. The Econlit abstract of this book begins: “Presents a model based on search and bargaining to use in investigating the impact of a minimum wage on labor market outcomes. Discusses descriptive evidence on minimum wage effects; a model of minimum wage effects on labor market careers; labor market and welfare impacts of minimum wages; minimum wage effects on labor market outcomes—a selective survey; assessing the welfare impacts of actual changes in the minimum wage; econometric issues; model estimates and tests; optimal minimum wages; the on-the-job search; and heterogeneity. Flinn is Professor of Economics at New York University and Senior Research Fellow at Collegio Carlo Alberto.”

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Is the Minimum Wage Effective in a Context of Informality?

Research in World Economy ◽

10.5430/rwe.v12n1p21 ◽

2021 ◽

Vol 12 (1) ◽

pp. 21

Author(s):

Susana Herrero Olarte

Keyword(s):

Labor Market ◽

Minimum Wage ◽

Empirical Studies ◽

Labor Income ◽

South American ◽

Poverty And Inequality ◽

South American Region ◽

Effect Estimation ◽

The Impact ◽

The Relationship

There is a general trend in the South American region to increase the minimum wage (MW) to reduce poverty and inequality. However, empirical studies are inconclusive with respect to the effect of the MW. This study seeks to contribute to the empirical evidence regarding the impact of this policy by exploring its limitations and possibilities for reducing poverty in Ecuador. Unlike other studies, a measure to capture informality in the labor market is included. Using fixed effect estimation with panel data, I determine the relationship between labor income deciles and variations in the MW, using a proxy for its effectiveness. The results suggest that the MW positively affects the lower income deciles, to a lesser extent the intermediate deciles and with no effect on the higher ones. However, when considering a control for the degree of informality in the labor market, the effect on the lower deciles is mitigated. Therefore, increases in the MW may be a strategy to increase the income of the middle and vulnerable class, but it does not seem to be useful for reducing poverty.

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The Impact of GRDP and RWP on Regional Minimum Wage

JEJAK ◽

10.15294/jejak.v13i2.23398 ◽

2020 ◽

Vol 13 (2) ◽

pp. 292-306

Author(s):

Robert Tua Siregar ◽

Hery Pandapotan Silitonga ◽

Khairunnisah Lubis ◽

Acai Sudirman

Keyword(s):

Linear Regression ◽

Multiple Linear Regression ◽

Correlation Coefficient ◽

Minimum Wage ◽

Linear Regression Analysis ◽

T Test ◽

Minimum Wages ◽

Market Demand ◽

F Test ◽

The Impact

The purpose of this research was to find out the effect of the percentage in development of Pematangsiantar city’s regional minimum wages, and the problem in this study how GRDP and RWP affect on the percentage of development of Regionl Minimum Wage at Pematangsiantar City. The method used was quantitative descriptive analysis. Data analysis used were Classic Assumption Test, Multiple Linear Regression, Correlation Coefficient, Determination, F-test and t-test object on RMW at Pematangsiantar city. Finding of research and results of the study can be summarized as follows: 1). The results of the multiple linear regression analysis test are that the GRDP and RWP had a positive effect on the RMW of Pematangsiantar City, 2). The results of the correlation coefficient indicate that the GRDP and RWP of Pematangsiantar City on its RMW were at a very strong level, while the coefficient of determination of 67.5% at high or low of the minimum wages can be explained by the GRDP and RWP, while the remaining of 32.5% was influenced by other factors which were not included in this study, 3). Hypothesis Test for F-test indicates that the GRDP and RWP influences significantly on Pematang city’s RMW, and for the t- test indicates that the GRDP and RWP had a positive and significant effect on the RMW in Pematangsiantar City from 2005 to 2018. This means that as the GRDP increases, the value of setting Pematangsiantar City's minimum wage in the following year will also increase, and vice versa. The increase of laborers/workers demands will affect the standard of regioanalwages that will be determined, this happens because wages will always adjust to the labor market demand. The stipulation of the minimum wage, it has an impact on GRDP in Pematangsiantar City, because the consumptive rate will be carried out in the place where it gets paid.

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The Analysis of the Impact of GDP, FDI, Minimum Wage on Employment in Indonesia

International Journal of Management Entrepreneurship Social Sciences and Humanities ◽

10.31098/ijmesh.v2i2.17 ◽

2019 ◽

Vol 2 (2) ◽

pp. 53-62

Author(s):

Thomson Sitompul ◽

Yansen Simangunsong

Keyword(s):

Minimum Wage ◽

Direct Investment ◽

Regression Models ◽

Time Series Data ◽

Minimum Wages ◽

Series Data ◽

Economic Sector ◽

Linear Regression Models ◽

The Impact ◽

Multiple Linear Regression Models

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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City Limits: What Do Local-Area Minimum Wages Do?

The Journal of Economic Perspectives ◽

10.1257/jep.35.1.27 ◽

2021 ◽

Vol 35 (1) ◽

pp. 27-50

Author(s):

Arindrajit Dube ◽

Attila Lindner

Keyword(s):

Minimum Wage ◽

Local Variation ◽

Local Area ◽

Minimum Wages ◽

Level Variation ◽

Early Evidence ◽

Trade Offs ◽

Federal Standard ◽

The Impact ◽

New Evidence

Cities are increasingly setting their own minimum wages, and this trend has accelerated sharply in recent years. While in 2010 there were only three cities with their own minimum wages exceeding the state or federal standard, by 2020 there were 42. This new phenomenon raises the question: is it desirable to have city-level variation in minimum wage polices? We discuss the main trade-offs emerging from local variation in minimum wage polices and evaluate their empirical relevance. First, we document what type of cities raise minimum wages, and we discuss how these characteristics can potentially impact the effectiveness of city-level minimum wage policies. Second, we summarize the evolving evidence on city-level minimum wage changes and provide some new evidence of our own. Early evidence suggests that the impact of the policy on wages and employment to date has been broadly similar to the evidence on state- and federal-level minimum wage changes. Overall, city-level minimum wages seem to be able to tailor the policy to the local economic environment without imposing substantial distortions in allocation of labor and businesses across locations.

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Minimum Wages and Supporting Wage Growth

10.1093/oso/9780198807056.003.0009 ◽

2018 ◽

Author(s):

Brian Nolan

Keyword(s):

Minimum Wage ◽

Real Wage ◽

Wage Growth ◽

Minimum Wages ◽

Central Question ◽

The Uk ◽

Household Incomes ◽

Rich Countries ◽

The Impact ◽

Over Time

This chapter addresses the central question of how governments can seek to underpin real wage growth for working households over time. It looks first at the role that minimum wages can play in supporting wages and household incomes in the middle as well as lower parts of the distribution. This is investigated through a simulation exercise looking at the impact of a substantial increase in the minimum wage in the UK, bringing out the broader lessons to be learned for rich countries. A variety of other routes through which policy might seek to support wage growth are then set out and discussed.

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Potential Migration Investigation in the Mechanism of Labor Market Regulation

Research in World Economy ◽

10.5430/rwe.v11n3p80 ◽

2020 ◽

Vol 11 (3) ◽

pp. 80

Author(s):

Olha Ryndzak ◽

Oleh Risnyy ◽

Mariana Bil

Keyword(s):

Labor Market ◽

Information Support ◽

Sample Survey ◽

Market Regulation ◽

Time Migration ◽

Complex Approach ◽

Gender And Age ◽

Long Time ◽

The Usa ◽

The Impact

Effective regulation of labor market and elaboration of preventive policy measures requires proper information support. Such support can be provided by the investigation of not only real but also potential migration. This article provides the authors’ complex approach to the study of a potential migration. In particular, three stages of potential migration are investigated on the basis of the results of a panel sample survey of unemployed in Lviv city, Ukraine (2013–2016, 2018-2019): migration desires, plans (decision) and preparations. Thus in 2019 the share of respondents having positive migration desires made up 56%, planning to move abroad – 26% and only 18% made some preparations for moving. Based on the results obtained during six years of study a map of migration preferences is made. So Germany, the USA and Canada are mostly chosen for permanent residence or long time migration. Poland and Germany are the most desired for temporary work. Based on the logistic regression model the impact of gender and age on decision regarding employment abroad is showed. Respondents’ estimations of their financial situation and employment opportunities in relation to their potential migration are also analyzed. Presented in the article study may be replicated in other regions and other samples may be used for survey. It would allow comparative analysis of potential migration between different groups and regions and would be helpful for policy making.

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Minimum Wages, Morality, and Efficiency: A Choice Experiment

AEA Papers and Proceedings ◽

10.1257/pandp.20191088 ◽

2019 ◽

Vol 109 ◽

pp. 176-181

Author(s):

Conor Lennon ◽

Jose Fernandez ◽

Stephan Gohmann ◽

Keith Teltser

Keyword(s):

Labor Market ◽

Minimum Wage ◽

Choice Experiment ◽

Public Support ◽

Employment Outcomes ◽

Minimum Wages ◽

Point Reduction ◽

Percentage Points ◽

Moral Assessment

We use a choice experiment to examine public support for minimum wages. We first elicit respondents' moral assessment of two labor market systems: one with a minimum wage and one without. Then, we present four pairs of hypothetical employment outcomes and ask respondents to “vote.” Our estimates suggest that the average respondent requires a 4.65 percentage point reduction in unemployment before they would support a system without a minimum wage. We also find that equity matters; respondents are 11.1 percentage points less likely to support a minimum wage if it disproportionately affects minorities and females.

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