scholarly journals The Effects of Minimum Wage Throughout the Wage Distribution in Indonesia

2018 ◽  
Vol 7 (2) ◽  
pp. 221-232
Author(s):  
Sri Gusvina Dewi
Keyword(s):  
Minimum Wage ◽  
Global Financial Crisis ◽  
Wage Distribution ◽  
Wage Policy ◽  
Wage Differences ◽  
Wage Difference ◽  
Rif Regression ◽  
The Global Financial Crisis ◽  
Wage Increases ◽  
Wage Function

The global financial crisis in 2007 followed by Indonesia’s largest labor demonstration in 2013 encouraged turmoils on Indonesia labor market. This paper examines the effect of the minimum wage on wage distribution in 2007 and 2014 and how the minimum wage increases in 2014 affected the distribution of wage differences between 2007 and 2014. This study employs recentered influence function (RIF) regression method to estimate the wage function by using unconditional quantile regression. Furthermore, to measure the effect of the minimum wage increase in 2014 on the distribution of wage differences, it uses the Oaxaca–Blinder decomposition method. Using balanced panel data from the Indonesian Family Life Survey (IFLS), it found that the minimum wage mitigates wage disparity in 2007 and 2014. The minimum wage policy in 2014 leads to an increase in the wage difference between 2007 and 2014, with the largest wage difference being in the middle distribution.DOI: 10.15408/sjie.v7i2.6125

scholarly journals Assessing Minimum Wage Policy Implications upon Income Inequalities. The Case of Romania

2019 ◽  
Vol 11 (9) ◽  
pp. 2542
Author(s):  
Eva Militaru ◽  
Madalina Ecaterina Popescu ◽  
Amalia Cristescu ◽  
Maria Denisa Vasilescu
Keyword(s):  
Income Distribution ◽  
Minimum Wage ◽  
Sustainable Growth ◽  
Policy Implications ◽  
Wage Distribution ◽  
Distribution Analysis ◽  
Wage Policy ◽  
Income Inequalities ◽  
Wage Earners ◽  
The Impact

Starting from the consideration that excessive income inequalities could hamper sustainable growth, our paper aims to evaluate the impact of the minimum wage policy upon wage and income distributions. Using the European Union Survey on Income and Living Conditions (EU-SILC) database with national representative sample of households, an income distribution analysis was conducted for the case of Romania based on two microsimulation approaches. The first one assumed building a counterfactual income distribution under the hypothesis of no change in minimum wage, while the second one implied a decomposition of the Gini coefficient of income inequalities based on main income determinants, including the minimum wage level and the share of minimum wage earners in the total number of employees. Both approaches pointed to similar findings, indicating a positive effect of the minimum wage on wage inequalities reduction for both genders, although higher for women, as they are more present among lower paid employees. The minimum wage policy can reshape the wage distribution, by enlarging the share of minimum income earners and narrowing the middle. Moreover, the household disposable income becomes less unequal when minimum wage increases, meaning that the income gain spreads over the entire household as most minimum wage earners come from poor households with numerous children.

scholarly journals The Aftermath of the Global Financial Crisis and Union Strategies in the Australian Public Service

2012 ◽  
Vol 67 (4) ◽  
pp. 633-653 ◽  
Author(s):  
Cameron Roles ◽  
Michael O’Donnell ◽  
Peter Fairbrother
Keyword(s):  
Public Service ◽  
Global Financial Crisis ◽  
Public Sector Union ◽  
Recruitment Activities ◽  
Union Renewal ◽  
Service Commission ◽  
The Global Financial Crisis ◽  
Wage Increases ◽  
Agency Management ◽  
Considerable Pressure

Summary The Australian Labor government’s recognition of collective bargaining under its Fair Work Act 2009, and its efficiency drive from late 2011 across the Australian Public Service (APS), presented the Community and Public Sector Union (CPSU) with an opportunity to explore means of union renewal following a decade of conservative governments focused on union exclusion. An expanding budget deficit in 2011 placed considerable financial constraints on Australian government revenue. The Labor government increased the annual “efficiency dividend”, or across the board cuts in funding, from 1.5 per cent in May 2011 to 4 per cent in November 2011 as it attempted to achieve a budget surplus. This placed considerable pressure on agency management to remain within tight constraints on wage increases and to find budget savings, resulting in growing job losses from 2011. There was also considerable central oversight over bargaining outcomes throughout this bargaining round, with the Australian Public Service Commission (APSC) involved at all stages of the agreement-making process, to the frustration of many agencies and the CPSU. Nevertheless, throughout the 2011-12 bargaining round, the CPSU worked with its members to develop creative forms of industrial action, such as one minute stoppages in the Defence department. The union also mobilized an overwhelming majority of APS employees to vote “no” in response to initial offers put by agency managements. In addition, the CPSU focused on winning bargaining concessions in politically sensitive government agencies and then flowing these concessions to other agencies. Typical of this approach were the agreements reached in the Immigration department and Customs agency. Union recruitment activities over 2011 resulted in a substantial rise in membership and enhanced communications with members through workplace meetings, telephone and internet communications, and emails. Such union initiatives highlight the potential for enhanced union capacities and mobilization during a time of growing austerity.

scholarly journals The minimum wage as a wage equality policy: Evidence from North Macedonia

2019 ◽  
Vol 64 (223) ◽  
pp. 61-81
Author(s):  
Marjan Petreski ◽  
Nikica Mojsoska-Blazevski ◽  
Mariko Ouchi
Keyword(s):  
Minimum Wage ◽  
Labour Force ◽  
Spillover Effects ◽  
Wage Distribution ◽  
Wage Increase ◽  
Current Policy ◽  
Wage Level ◽  
Minimum Wage Increase ◽  
Wage Increases ◽  
Wage Compression

The paper aims to investigate if the minimum wage increase of September 2017 resulted in better wage equality in North Macedonia. The increase of 19% was sizable and included levelling up in the three sectors with a lower minimum wage: textiles, apparel, and leather. We extend the ?cell? approach of Card (1992a) and rely on data from the Labour Force Survey 2017 and 2018. The results suggest that the 2017 increase in the minimum wage had a positive, significant, and robust effect on wages. However, the wage increases were almost entirely positioned on the left side of the wage distribution and implied wage compression up to or around the minimum wage. The bunching around the new minimum wage level ?equalised? workers: those who previously earned the new minimum wage level equalised with the less productive workers who approximated their wage only by the power of the law. Hence, wage equality improved. The results confirm that the minimum wage can be an important wage equality policy, with considerably limited upward spillover effects in the current policy and institutional setup.

U.S. State Minimum Wage Policies and Employment Performance Improvement

2015 ◽  
Vol 30 (1) ◽  
pp. 73-87
Author(s):  
Kim Dae Hyun
Keyword(s):  
Minimum Wage ◽  
Federal State ◽  
Evidence Based ◽  
State Governments ◽  
Public Administrators ◽  
Wage Policy ◽  
Statistical Research ◽  
Evidence Based Policy ◽  
State And Local ◽  
Wage Increases

Federal, state and local departments of labor are managing the minimum wage levels. U.S. state minimum wage increases are positively associated with GRDP growth rates and education expenditure rates. Minimum wage increases are positively associated with economic capacities and human capital improvements. And U.S. state minimum wage increases are negatively associated with state citizen ideology scores. Thus, relatively conservative citizens are supporting the minimum wage increase and U.S. state governments/governors are reflecting these conservative citizen ideologies regardless of state governments' and state governors' ideologies. These are the strong evidences of state policy congruence in case of minimum wage policy. And politicians and public administrators should respect the evidence-based policy approaches. Specialist opinions, evaluation reports and experiences are excellent sources of evidence-based policy. Public policy decisions should be based on these evidence-based policy approaches. Especially, politicians and public administrators should manage the relationships between minimum wage policy and employment performances cautiously by using public performance measures and statistical research methods. And minimum wage policy should be harmonized with labor productivity improvement.

Raise the Wage LA: Campaigning for Living Wages in Los Angeles and an Emergent Working-Class Repertoire

2020 ◽  
Vol 5 (1) ◽  
pp. 31-52
Author(s):  
Paul Doughty
Keyword(s):  
Los Angeles ◽  
Working Class ◽  
Minimum Wage ◽  
Global Financial Crisis ◽  
The United States ◽  
Occupy Movement ◽  
Living Wages ◽  
Short Period ◽  
The Global Financial Crisis ◽  
Political Leverage

In a relatively short period in the aftermath of the Global Financial Crisis and the Occupy movement, minimum wage campaigns rapidly gained momentum across the United States. In particular a purposeful working-class mobilisation of the Los Angeles labour movement in coalition with worker centres and community organisations, and set against the backdrop of the national Fight for $15, deployed a range of tactics and exercised political leverage from 2014-2016 to be successful in securing an increase in the minimum wage to $15 in the U.S.’s second most populous city, in its most populous state. Based on interviews conducted in Los Angeles in December 2016 this article describes L.A.’s Raise the Wage campaign in a framework of mobilisation theory (Kelly 1998; Tilly 1978). It is argued that the elements of mobilisation theory are present and that the mobilisations in L.A. of the kind studied represent an expansion of working-class repertoire.

The Legal Framework for New Economic Governance and its Implications for Wage Policy Learning

2014 ◽  
Vol 16 ◽  
pp. 39-73
Author(s):  
Samuel Dahan
Keyword(s):  
Global Financial Crisis ◽  
Legal Framework ◽  
Point Of View ◽  
Policy Learning ◽  
Economic Governance ◽  
Wage Setting ◽  
Wage Policy ◽  
Cost Competitiveness ◽  
New Economic Governance ◽  
The Global Financial Crisis

AbstractThis chapter examines the implications of the new European economic governance framework from a policy-learning point of view. It is argued that a new form of EU learning influence has emerged in the wake of the EMU legal and institutional crisis. The author takes the view that an inherent asymmetry in the EMU, namely the presence of a unified monetary policy without a commensurate coordination of social policy and wage-setting mechanisms, contributed to the development of the crisis. The latent consequences of this flaw—diverging (wage) growth and cost competitiveness—were brought into full view when the global financial crisis struck. In response, new wage governance instruments were established in order to exert learning pressure on wage development and wage-setting systems in the EU. The substantive orientation of this new framework is examined with an eye to determining whether it qualifies as a learning process under which wage and spending cuts supplant the role of currency depreciation as a means of addressing external economic shocks and competitiveness gaps. Finally, drawing on recent findings concerning the workings of the ‘European Semester’, the chapter assesses whether the new economic governance reforms are already generating learning outcomes at the domestic level.

At What Point Do Wages Make Ends Meet? Investigating the Relationship Between Wages and Material Hardship in New York City

2020 ◽  
Vol 101 (3) ◽  
pp. 289-307
Author(s):  
Sophie Collyer
Keyword(s):  
New York ◽  
New York City ◽  
Minimum Wage ◽  
York City ◽  
Wage Distribution ◽  
Material Hardship ◽  
Policy Changes ◽  
Wage Policy ◽  
Local Areas ◽  
The Relationship

Several states and local areas have increased the minimum wage in recent years, and we anticipate that many policymakers and advocates will be interested in evaluating the impacts that these increases have had on material hardships such as not having enough money for rent, food, and utilities. The relationship between wages and material hardship absent policy changes has not been thoroughly documented in the literature, however. An understanding of how material hardships relate to wages is critical when trying to determine whether minimum wage policy changes have impacted material hardship. This article asks, is there a linear relationship between wages and material hardship at the bottom of the wage distribution, or do wages have to hit a certain point before we observe significant declines in material hardship? Results come from the New York City Longitudinal Study of Wellbeing (NYC-LSW), also referred to as the “Poverty Tracker,” and are specific to New York City in 2016. The results show that among workers in New York City in 2016, rates of material hardship are relatively constant at the bottom of the wage distribution, if not increasing. However, rates of hardship begin to decline more rapidly in the wage distribution around US$15 per hour.

The State of the Minimum Wage: Federalism, Economic Policy, and Workers’ Well-Being

The Forum ◽  
2017 ◽  
Vol 15 (1) ◽  
Author(s):  
Patrick Flavin ◽  
Gregory Shufeldt
Keyword(s):  
Quality Of Life ◽  
Working Class ◽  
Minimum Wage ◽  
Well Being ◽  
The United States ◽  
Wage Policy ◽  
American States ◽  
Wage Increases

AbstractIn this essay, we contribute to the growing national discussion about the future of minimum wage policy and its implications for working class Americans. First, we discuss the politics of the minimum wage in the United States, with special attention to the sizable and rich variation across the fifty American states and the importance of federalism. Second, we examine competing theoretical arguments (and, when available, empirical evidence) about the advantages and the disadvantages of increasing the minimum wage, particularly as it pertains to workers’ well-being. Third, as a case study of the potential effects of raising the minimum wage, we present preliminary results from an original empirical analysis that assesses how state minimum wage increases impact the quality of life that working class citizens experience.

scholarly journals Effects of minimum wage increases on employment in Lithuania

Ekonomika ◽  
2015 ◽  
Vol 94 (2) ◽  
pp. 96-112 ◽  
Author(s):  
Mykolas Šuminas
Keyword(s):  
Minimum Wage ◽  
Wage Policy ◽  
Wage Elasticity ◽  
Academic Literature ◽  
Wage Effects ◽  
Economic Downturns ◽  
The Us ◽  
State Of The Economy ◽  
Wage Increases ◽  
Wage Earners

From the advent of minimum wage it was subject to controversy: economists did not agree on its effects on the state of the economy, the welfare of both firms and workers. Empirical academic literature usually investigates employment reaction to the minimum wage fluctuations. Regrettably, such papers do not exist for Lithuania, so the literature of similar scope and topic of the US and UK (along with several other countries) is explored in this paper.The effect of the Lithuanian real minimum wage on aggregate employment is estimated by using time series models. Dependant on the specification, the real minimum wage elasticity is estimated to be –0.03–0.03 yet statically insignificant in all of the models. The result is in line with the reviewed literature; more precisely most of papers published in mid-1990s and beyond do not register any significant minimum wage effects on employment. The phenomenon is attributed to the fact that firms can exploit other channels (raising prices, hiring more productive employees, etc.) to make adjustments to new, higher wages. The paper does not explore what channels were used by the firms; however, a possible channel of productivity is investigated. Moreover, the temperate minimum wage policy is one of the factors that could have led to the insignificance of minimum wage to employment conclusion: the nominal minimum wage was only raised during the period of economic growth, and during economic downturns and recoveries it was frozen. The claim is further supported by the share of minimum wage earners in respect to total employed and the minimum wage to average wage ratio: the variables were relatively constant from 2005 onwards.

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