Assessing the Impact of a Minimum Wage on Positional Persistence Across the Wage Distribution

2019 ◽  
Author(s):  
Costanza Naguib
Keyword(s):  
Minimum Wage ◽  
Wage Distribution ◽  
The Impact

scholarly journals The impact of a minimum wage change on the distribution of wages and household income

2020 ◽  
Author(s):  
Paul Redmond ◽  
Karina Doorley ◽  
Seamus McGuinness
Keyword(s):  
Income Distribution ◽  
Minimum Wage ◽  
Wage Inequality ◽  
Household Income ◽  
Spillover Effects ◽  
Wage Distribution ◽  
Wage Increase ◽  
Minimum Wage Increase ◽  
Wage Change ◽  
The Impact

Abstract We use distribution regression analysis to study the impact of a 6% increase in the Irish minimum wage on the distribution of hourly wages and household income. Wage inequality, measured by the ratio of wages in the 90th and 10th percentiles and the 75th and 25th percentiles, decreased by approximately 8 and 4%, respectively. The results point towards wage spillover effects up to the 30th percentile of the wage distribution. We show that minimum wage workers are spread throughout the household income distribution and are often located in high-income households. Therefore, while we observe strong effects on the wage distribution, the impact of a minimum wage increase on the household income distribution is quite limited.

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 minimum wage remains significantly high in Morocco

2020 ◽  
Vol 2 (2) ◽  
pp. 9-15
Author(s):  
Mohamed Abrich ◽  
Mohamed Amine Lahlou
Keyword(s):  
Minimum Wage ◽  
Rural Areas ◽  
Structural Model ◽  
Youth Unemployment ◽  
Scientific Publication ◽  
Wage Distribution ◽  
Macroeconomic Variables ◽  
Minimum Wage Legislation ◽  
Urban And Rural Areas ◽  
The Impact

Morocco passed minimum wage legislation as early as 1936 with the aim of defining minimum pay levels for employees in urban and rural areas. Decisions to increase the minimum wage (guaranteed minimum wage) and SMAG (minimum guaranteed agricultural wage), which serve as minimum wages in the non-agricultural and agricultural sectors, respectively, do not follow a pre-established timetable but arise from exchanges between different stakeholders within the framework of social dialogue. Since the early 2000s, around ten increases have been implemented on the minimum wage, however, no scientific publication analyzing their effects on the Moroccan economy has been carried out. Thus, the objective of the study published by BAM is to examine the impact of revaluations of the minimum wage on a set of macroeconomic variables of interest to the decision-maker. The study reviews the criteria for setting the minimum wage and its macroeconomic effects. Then on the stylized facts that characterize the minimum wage in Morocco, particularly in relation to wage distribution, employment, informality and youth unemployment. The study also explores the links between minimum wage, overall salary and employment. Finally, a simulation of the effects of the increase in the minimum wage on the Moroccan economy is carried out based on a more structural model derived from the IMF's FSGM model.

scholarly journals Impact of the Minimum Wage on Wages and Wage Inequality in 2019

2019 ◽  
Vol 15 (4) ◽  
pp. 21-35
Author(s):  
Lyudmila Migranova ◽  
Raisa Popova
Keyword(s):  
Minimum Wage ◽  
Wage Inequality ◽  
Socioeconomic Development ◽  
Spatial Inequality ◽  
Wage Distribution ◽  
Soviet Period ◽  
Minimum Level ◽  
Low Level ◽  
Subsistence Minimum ◽  
The Impact

The Object of the Study. Wages in Russiya and in its regionsThe Subject of the Study. Levels and differentiation of wages The Purpose of the Study is examining the impact of raising the minimum wage up to the subsistence minimum level of the able-bodied population in 2018-2019 on the dynamics of the main characteristics of wages at the federal and regional levels. The Main Propositions of the Article. The problem of spatial inequality includes socioeconomic inequality of the population which primarily depends on work remuneration as the main source of monetary income of households. The problems of work remuneration in the post-Soviet period are well-known – low levels, relatively high wage differentiation including cross-sectoral and cross-regional disparities. These were caused to a large extent by the low level of the minimum wage in the country. In May 2018 the minimum wage was raised up to the subsistence minimum level (poverty line) of the able-bodied population. Using the data from the wage surveys conducted by Rosstat in 2017 and 2019 the authors analyse the shifts in wage distribution of workers in Russiya and in its regions. The increase in the minimum wage resulted in a decline in the general differentiation of wages across the country and in the vast majority of regions, in reduction of the intra-industry and cross-regional differences. In 2019 the funds ratio (ratio of mean wages of the upper and the bottom deciles) exceeded 10 only in six regions, while in 2017 there were 29 such regions. In 2017 that ratio was below 8 only in 6 regions, in 2019 – in 45 regions, and in most of them (26) the average wage was 3 times below the subsistence minimum level of the able-bodied population. The analysis has shown that the low level of wages of most employees still remains an urgent problem, and reduction in wage inequality also has the reverse aspect. We know from the Soviet experience that low (as well as high) level of wage inequality does not promote work incentives and socioeconomic development of territories.

scholarly journals The Effect of Provincial Minimum Wage on Wage Inequality in Java

2019 ◽  
pp. 352-357
Author(s):  
Daniel Bastian Lubis ◽  
Syamsul Hidayat Pasaribu ◽  
Muhammad Findi
Keyword(s):  
Income Inequality ◽  
Labor Force ◽  
Minimum Wage ◽  
Wage Inequality ◽  
Wage Gap ◽  
Negative Impact ◽  
Minimum Wages ◽  
Wage Distribution ◽  
Wage Setting ◽  
The Impact

The minimum wage setting policy as an effort to improve wage distribution and expected to reduce income inequality is still being a debate in the literatures. However, similar studies, especially those that examine the impact of establishing minimum wages on the conditions of wages for workers in different percentile groups, have not been widely practiced in Indonesia. This study aims to analyze the increase in effective minimum wages against the wage gap of workers in the period 2008-2017 in Java using the National Labor Force Survey (Sakernas) data. Through the OLS method, we find that the impact of minimum wages is not the same among percentile groups. The effective minimum wage has a negative impact on the wage 30th percentile group where an increase in effective wage will reduces the gap between the 30th percentile and the 50th percentile. We find different result on 60th percentile. On this percentile, the effective minimum wage will increases the gap between the 60th percentile and the 50th percentile, this result implies a spillover.

scholarly journals A First Glance at the Minimum Wage Incidence in Lithuania Using Social Security Data*

Ekonomika ◽  
2021 ◽  
Vol 100 (1) ◽  
pp. 31-53
Author(s):  
Jose Garcia-Louzao ◽  
Linas Tarasonis
Keyword(s):  
Social Security ◽  
Minimum Wage ◽  
High Frequency ◽  
Descriptive Analysis ◽  
Wage Distribution ◽  
Labor Income ◽  
Gender And Age ◽  
Real Increase ◽  
The Impact ◽  
Low Pay

This document explores the incidence of the minimum wage in Lithuania. The descriptive analysis exploits high-frequency data on monthly labor income coming from Social Security records between July 2013 and July 2020 to characterize (i) the evolution of the monthly minimum wage, (ii) the percentage of workers who earn the minimum wage, (iii) the bite of the minimum wage in the wage distribution, and (iv) the heterogeneity of the findings with respect to gender and age. The evidence shows that the minimum wage was raised 7 times with an average (real) increase of 7.3% and, on average, less than 10% of the workers earn at most the minimum wage but low-pay incidence is around 20%. In terms of the impact of the wage distribution, the minimum wage relative to the average wage in the economy fluctuates between 45 and 50 percent. Females and young workers exhibit a larger low-pay incidence and minimum wage bite.

Busting The Myth: The Impact of Increasing The Minimum Wage: The Experience of Romania

2018 ◽  
Author(s):  
Frank Heemskerk ◽  
Liviu Voinea ◽  
Alexandra Cojocaru
Keyword(s):  
Minimum Wage ◽  
The Impact

scholarly journals The Minimum Wage Affects Them All: Evidence on Employment Spillovers in the Roofing Sector

2013 ◽  
Vol 14 (3) ◽  
pp. 282-315 ◽  
Author(s):  
Bodo Aretz ◽  
Terry Gregory ◽  
Melanie Arntz
Keyword(s):  
Minimum Wage ◽  
Scale Effects ◽  
Minimum Wages ◽  
Wage Distribution ◽  
Employment Effects ◽  
Eastern Germany

Abstract This study contributes to the sparse literature on employment spillovers of minimum wages. We exploit the minimum wage introduction and subsequent increases in the German roofing sector that gave rise to an internationally unprecedented hard bite of a minimum wage. We look at the chances of remaining employed in the roofing sector for workers with and without a binding minimum wage and use the plumbing sector that is not subject to a minimum wage as a suitable benchmark sector. By estimating the counterfactual wage that plumbers would receive in the roofing sector given their characteristics, we are able to identify employment effects along the entire wage distribution. The results indicate that the chances for roofers to remain employed in the sector in eastern Germany deteriorated along the entire wage distribution. Such employment spillovers to workers without a binding minimum wage may result from scale effects and/or capital-labour substitution.

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