Does minimum wage affect hours worked of paid employment in Indonesia?

2014 ◽  
Vol 41 (5) ◽  
pp. 362-379 ◽  
Author(s):  
Devanto Shasta Pratomo

Purpose – The purpose of this paper is to examine the effect of a change in minimum wage on hours worked of paid employment in Indonesia. This study used the Indonesian Labor Force Survey (Sakernas) data from 1996 to 2003. Design/methodology/approach – This study employs Bourguignon-Fournier-Gurgand two-step procedure of sample selection corrections based on a multinomial logit model for a potential selection bias from a non-random sample. This study extends the specification by examining the effects of minimum wage on hours worked of paid employment separately across individuals in different groups of gender (male-female workers) and residences (urban-rural areas). Findings – This study generally found that an increase in the minimum wage increases hours worked of the existing paid employees. The effects of the minimum wage on hours worked are stronger for female workers than male workers particularly in urban areas due to that female workers, particularly in urban areas, are mostly employed in industries which contain more low-wage workers. Comparing residences, the minimum wage coefficient in rural areas is slightly higher because of the structural transformation in Indonesia marked by a shift in employment from the agriculture sector to the other sectors that require more working hours. Originality/value – The empirical studies of the effect of minimum wage on hours worked in developing countries are very limited. This study contributes to the literature by employing the sample selection corrections based on a multinomial logit for a potential selection bias from a non-random sample This study also extends the hours worked specification by analyzing the effects of minimum wage on hours worked separately across individuals in different groups of workers, in terms of gender (male-female workers) and their residences (urban-rural areas).

2016 ◽  
Vol 43 (2) ◽  
pp. 259-274
Author(s):  
Devanto Shasta Pratomo

Purpose – The purpose of this paper is to examine the effects of minimum wage on youth employment across employment statuses in Indonesia. This study uses the National Labour Force Survey (Sakernas) from 2010 to 2012. Design/methodology/approach – This study uses a multinomial logit model to see the youth distribution across different employment status changes as a result of an increase in the minimum wage. Five categories of youth employment statuses are examined including self-employed; unpaid family workers; paid employees in the covered sector; paid employees in the uncovered sectors; and unemployed. The model is examined separately for urban and rural areas, as well as for the male and female youth labour market. Findings – The results generally suggest that an increase in minimum wage decrease the probability of youth being employed in the covered sector, i.e. paid employment in the covered sector and increase the probability of youth being employed in the uncovered sectors, including self-employed, unpaid family workers, and paid employment in the uncovered sectors. This study indicates a displacement effect for youths from the covered sector into the uncovered sector as suggested by the two-sector model. The specific results are different across urban and rural labour markets, as well as across males and females. Originality/value – Compared to the developed country studies, the studies on the effects of minimum wage on youth employment in developing countries is relatively limited. The sample from Indonesian labour market with a large informal sector has never been used for these purposes. This study also contributes to the literature by using the particular definition of the covered-uncovered sector to the Indonesian labour market based on the employment status and individual wage data.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lixin Cai

PurposeThe purpose of this study is to examine the effects of health on wages of Australian workers, with a focus on gender differences and the role of macroeconomic conditions in the effects.Design/methodology/approachThe first 15 waves of the Household, Income and Labour Dynamics in Australia survey are used to estimate a wage model that accounts for the endogeneity of health, unobserved heterogeneity and sample selection bias.FindingsThe results show that, after accounting for the endogeneity of health, unobserved heterogeneity and sample selection bias, better health increases wages for Australian male workers, but not for female workers. The results also show that accounting for the endogeneity of health, unobserved heterogeneity and potential sample selection bias is important in estimating the effects of health on wages. In particular, a simple ordinary least squares estimator would underestimate the effect of health on wages for males, while overestimate it for females, and simply addressing the endogeneity of health using instrumental variables could overestimate the effect for both genders. It is also found that the effects of health on wages fall under depressed macroeconomic conditions, perhaps due to reduced job mobility and increased presentism during a recession.Originality/valueThis study adds to the international literature on the effects of health on wages by providing empirical evidence from Australia. The model applied to estimate the effects takes advantage of a panel dataset to address the bias resulting potentially from all the sources of the endogeneity of health, unobserved heterogeneity and sample selection. The results indeed show that failing to address these issues would substantially bias the estimated effects of health on wages.


2006 ◽  
Vol 38 (4) ◽  
pp. 693-710 ◽  
Author(s):  
Euan Phimister ◽  
Ioannis Theodossiou ◽  
Richard Upward

In this paper we compare periods of low-paid employment between urban and rural areas in the United Kingdom. Using the British household panel survey, we estimate the probability that a period of low-paid employment will end, followed by a number of possible outcomes, namely a higher-paid job, self-employment, unemployment, and leaving the labour force. The results show that there are statistically significant differences in the dynamics of low pay across urban and rural labour markets, particularly in terms of exits to higher pay and out of the labour force. After controlling for different personal and job characteristics across markets, urban low-pay durations are somewhat shorter on average, with a higher probability of movement to a higher-paid job. The results suggest that any urban–rural differences in the typical low-pay experience are concentrated among certain types of individuals, such as young workers and women without qualifications.


2021 ◽  
pp. 001955612110016
Author(s):  
Anurima Mukherjee Basu ◽  
Rutool Sharma

Current urbanisation trends in India show a quantum jump in number of ‘census towns’, which are not statutorily declared as urban areas, but have acquired all characteristics of urban settlements. Sizeable number of such census towns are not located near any Class 1 city. Lack of proper and timely planning has led to unplanned growth of these settlements. This article is based on a review of planning legislations, institutional framework and planning process of four states in India. The present article analyses the scope and limitations of the planning process adopted in the rapidly urbanising rural areas of these states. The findings reveal that states are still following a conventional approach to planning that treats ‘urban’ and ‘rural’ as separate categories and highlights the need for adopting an integrated territorial approach to planning of settlements.


2019 ◽  
Vol 80 (1) ◽  
pp. 51-67
Author(s):  
Yaw Sarfo ◽  
Oliver Musshoff ◽  
Ron Weber

Purpose With exclusive data from a commercial microfinance institution (MFI) in Madagascar, the purpose of this paper is to investigate if loan officer rotation (change of loan officer) has an effect on credit access (loan approval) in rural and in urban areas. The authors further analyze how the frequency of loan officer rotation affects credit access in rural and in urban areas. Design/methodology/approach The authors apply propensity score matching to compare credit access between loan applicants who experienced loan officer rotation and loan applicants who experienced no loan officer rotation in rural and in urban areas. Findings Results show that loan officer rotation has a positive and statistically significant effect on credit access. The authors observe further that loan officer rotation has a different effect on credit access in rural and in urban areas. Whilst rural loan applicants who experienced loan officer rotation are more likely to have credit access, urban loan applicants show no statistically significant effect of loan officer rotation on credit access. For the frequency effect on credit access, the authors observe that one loan officer rotation has a positive and statistically significant effect on credit access whereas results are mixed for two loan officer rotations. Research limitations/implications Even though the authors can show that loan officer rotation can improve credit access to loan applicants, especially in rural areas, the conditions in Madagascar are unique. Therefore, results need to be verified in other countries and institutional contexts. Practical implications From the perspective of MFI, the authors recommend that the management of MFI needs to provide better tools to loan officers to improve on the evaluation of agricultural loan products or standardize the assessment of agricultural loan products to improve on lending decisions. Further, if applicable, the authors recommend that MFI should consider using credit worthiness assessment procedures which rely less on loan officer’s judgment for loan evaluation, such as automated systems. From the perspective of loan applicants, the authors recommend that loan applicants should request for a change of loan officer if they experience successive loan applications rejection. Originality/value To the authors’ knowledge, this paper is the first to provide empirical evidence on the effect and frequency of loan officer rotation on credit access in Sub-Sahara Africa, and Madagascar, in particular.


BMJ Open ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. e042762
Author(s):  
Shuai Yuan ◽  
Shao-Hua Xie

ObjectiveThe substantial differences in socioeconomic and lifestyle exposures between urban and rural areas in China may lead to urban–rural disparity in cancer risk. This study aimed to assess the urban–rural disparity in cancer incidence in China.MethodsUsing data from 36 regional cancer registries in China in 2008–2012, we compared the age-standardised incidence rates of cancer by sex and anatomic site between rural and urban areas. We calculated the rate difference and rate ratio comparing rates in rural versus urban areas by sex and cancer type.ResultsThe incidence rate of all cancers in women was slightly lower in rural areas than in urban areas, but the total cancer rate in men was higher in rural areas than in urban areas. The incidence rates in women were higher in rural areas than in urban areas for cancers of the oesophagus, stomach, and liver and biliary passages, but lower for cancers of thyroid and breast. Men residing in rural areas had higher incidence rates for cancers of the oesophagus, stomach, and liver and biliary passages, but lower rates for prostate cancer, lip, oral cavity and pharynx cancer, and colorectal cancer.ConclusionsOur findings suggest substantial urban–rural disparity in cancer incidence in China, which varies across cancer types and the sexes. Cancer prevention strategies should be tailored for common cancers in rural and urban areas.


2008 ◽  
Vol 40 (1) ◽  
pp. 83-96 ◽  
Author(s):  
M. MAZHARUL ISLAM ◽  
KAZI MD ABUL KALAM AZAD

SummaryThis paper analyses the levels and trends of childhood mortality in urban Bangladesh, and examines whether children’s survival chances are poorer among the urban migrants and urban poor. It also examines the determinants of child survival in urban Bangladesh. Data come from the 1999–2000 Bangladesh Demographic and Health Survey. The results indicate that, although the indices of infant and child mortality are consistently better in urban areas, the urban–rural differentials in childhood mortality have diminished in recent years. The study identifies two distinct child morality regimes in urban Bangladesh: one for urban natives and one for rural–urban migrants. Under-five mortality is higher among children born to urban migrants compared with children born to life-long urban natives (102 and 62 per 1000 live births, respectively). The migrant–native mortality differentials more-or-less correspond with the differences in socioeconomic status. Like childhood mortality rates, rural–urban migrants seem to be moderately disadvantaged by economic status compared with their urban native counterparts. Within the urban areas, the child survival status is even worse among the migrant poor than among the average urban poor, especially recent migrants. This poor–non-poor differential in childhood mortality is higher in urban areas than in rural areas. The study findings indicate that rapid growth of the urban population in recent years due to rural-to-urban migration, coupled with higher risk of mortality among migrant’s children, may be considered as one of the major explanations for slower decline in under-five mortality in urban Bangladesh, thus diminishing urban–rural differentials in childhood mortality in Bangladesh. The study demonstrates that housing conditions and access to safe drinking water and hygienic toilet facilities are the most critical determinants of child survival in urban areas, even after controlling for migration status. The findings of the study may have important policy implications for urban planning, highlighting the need to target migrant groups and the urban poor within urban areas in the provision of health care services.


2010 ◽  
Vol 10 (19) ◽  
pp. 9563-9578 ◽  
Author(s):  
C. C.-K. Chou ◽  
C. T. Lee ◽  
M. T. Cheng ◽  
C. S. Yuan ◽  
S. J. Chen ◽  
...  

Abstract. To investigate the physico-chemical properties of aerosols in Taiwan, an observation network was initiated in 2003. In this work, the measurements of the mass concentration and carbonaceous composition of PM10 and PM2.5 are presented. Analysis on the data collected in the first 5-years, from 2003 to 2007, showed that there was a very strong contrast in the aerosol concentration and composition between the rural and the urban/suburban stations. The five-year means of EC at the respective stations ranged from 0.9±0.04 to 4.2±0.1 μgC m−3. In rural areas, EC accounted for 2–3% of PM10 and 3–5% of PM2.5 mass loadings, comparing to 4–6% of PM10 and 4–8% of PM2.5 in the urban areas. It was found that the spatial distribution of EC was consistent with CO and NOx across the network stations, suggesting that the levels of EC over Taiwan were dominated by local sources. The measured OC was split into POC and SOC counterparts following the EC tracer method. Five-year means of POC ranged from 1.8±0.1 to 9.7±0.2 μgC m−3 among the stations. It was estimated that the POM contributed 5–17% of PM10 and 7–18% of PM2.5 in Taiwan. On the other hand, the five-year means of SOC ranged from 1.5±0.1 to 3.8±.3 μgC m−3. The mass fractions of SOM were estimated to be 9–19% in PM10 and 14–22% in PM2.5. The results showed that the SOC did not exhibit significant urban-rural contrast as did the POC and EC. A significant cross-station correlation between SOC and total oxidant was observed, which means the spatial distribution of SOC in Taiwan was dominated by the oxidant mixing ratio. Besides, correlation was also found between SOC and particulate nitrate, implying that the precursors of SOA were mainly from local anthropogenic sources. In addition to the spatial distribution, the carbonaceous aerosols also exhibited distinct seasonality. In northern Taiwan, the concentrations of all the three carbonaceous components (EC, POC, and SOC) reached their respective minima in the fall season. POC and EC increased drastically in winter and peaked in spring, whereas the SOC was characterized by a bimodal pattern with the maximal concentration in winter and a second mode in summertime. In southern Taiwan, minimal levels of POC and EC occurred consistently in summer and the maxima were observed in winter, whereas the SOC peaked in summer and declined in wintertime. The discrepancies in the seasonality of carbonaceous aerosols between northern and southern Taiwan were most likely caused by the seasonal meteorological settings that dominated the dispersion of air pollutants. Moreover, it was inferred that the Asian pollution outbreaks could have shifted the seasonal maxima of air pollutants from winter to spring in the northern Taiwan, and that the increases in biogenic SOA precursors and the enhancement in SOA yield were responsible for the elevated SOC concentrations in summer.


2017 ◽  
Vol 44 (6) ◽  
pp. 715-731 ◽  
Author(s):  
Ivy Drafor

Purpose The purpose of this paper is to analyse the spatial disparity between rural and urban areas in Ghana using the Ghana Living Standards Survey’s (GLSS) rounds 5 and 6 data to advance the assertion that an endowed rural sector is necessary to promote agricultural development in Ghana. This analysis helps us to know the factors that contribute to the depravity of the rural sectors to inform policy towards development targeting. Design/methodology/approach A multivariate principal component analysis (PCA) and hierarchical cluster analysis were applied to data from the GLSS-5 and GLSS-6 to determine the characteristics of the rural-urban divide in Ghana. Findings The findings reveal that the rural poor also spend 60.3 per cent of their income on food, while the urban dwellers spend 49 per cent, which is an indication of food production capacity. They have low access to information technology facilities, have larger household sizes and lower levels of education. Rural areas depend a lot on firewood for cooking and use solar/dry cell energies and kerosene for lighting which have implications for conserving the environment. Practical implications Developing the rural areas to strengthen agricultural growth and productivity is a necessary condition for eliminating spatial disparities and promoting overall economic development in Ghana. Addressing rural deprivation is important for conserving the environment due to its increased use of fuelwood for cooking. Absence of alternatives to the use of fuelwood weakens the efforts to reduce deforestation. Originality/value The application of PCA to show the factors that contribute to spatial inequality in Ghana using the GLSS-5 and GLSS-6 data is unique. The study provides insights into redefining the framework for national poverty reduction efforts.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gulsan Ara Parvin ◽  
Nina Takashino ◽  
Md. Shahidul Islam ◽  
Md. Habibur Rahman ◽  
Md. Anwarul Abedin ◽  
...  

Purpose This study aims to explore whether socio-economic factors determine the level of menstrual knowledge and perceptions of schoolgirls in Bangladesh. The aim of this study is to understand how knowledge and perceptions vary with variations in the different socio-economic factors in a schoolgirl’s life such as place of residence, religion, age, grade, parents’ education, parents’ occupation, family income and even family size. Design/methodology/approach Data were collected from four schools (two in urban areas and two in rural areas). A total of 450 schoolgirls from grades V–X were interviewed to examine how knowledge and perceptions varied with different socio-economic aspects. Multiple logistic regression models were used to measure the associations between various socio-economic variables and perceptions of and knowledge about menstruation. Findings Respondents from urban areas were 4.75 times more likely and those 14–16 years old were two times more likely to report higher levels of knowledge about menstruation compared to their counterparts. Based on the father’s occupation, respondents whose father was engaged in a professional occupation were 1.983 times more likely to have a higher level of knowledge on menstruation compared to those whose fathers were in an unskilled profession. Similarly, the odds of positive perceptions on menstruation were 1.456 and 1.987 times higher, respectively, among respondents living in urban areas and those 14–16 years old, compared to their counterparts. Originality/value This study provides evidence that different socio-economic and even demographic factors are important in the development of menstrual knowledge and perceptions. Policy formulation and development actions related to adolescent girls’ physical and reproductive health development need to consider these factors in Bangladesh and in other developing countries, where poor knowledge and perception related to menstruation are hindering girls’ mental and physical development. This is expected that better knowledge and perception will facilitate girls’ right to have better health and social lives.


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