scholarly journals Two empirical analyses of the minimum wage impacts on employment

2015 ◽  
Author(s):  
◽  
Yandi Liu
Keyword(s):  
Minimum Wage ◽  
Kansas City ◽  
Empirical Studies ◽  
Theoretical Models ◽  
Retail Trade ◽  
Minimum Wages ◽  
Substitution Effects ◽  
Wage Policy ◽  
Total Employment ◽  
Firm Level

"The contentious debates regarding minimum wages have produced little agreement so far on the extent to which it affects employment. The dissertation intends to provide a better understanding of minimum wage impacts on employment. The literature review considers both the theoretical models and empirical studies, as well as providing a detailed examination of their methodologies. Two empirical studies form the core of the dissertation. One study estimates the minimum wage impacts using state-level CPS data from 1979 to 2011 in a panel regression framework. The other study explores a natural experiment due to a legislated increase of the minimum wage in Missouri but not in Kansas. Comparing firms in the Kansas City metropolitan area on both sides of the state boundary, the analysis considers minimum wage effects at both the firm-level and individual-level for various groups of firm sizes and different earners. The analysis is performed on multiple selected broad industries. This dissertation finds that in general minimum wage reduces total employment. However, the impacts of minimum wage policy do vary substantially across industries and across groups. Firms with no more than 10 employees and new firms are more likely to experience increase in employment with the increase of minimum wages. In addition, due to substitution effects, people with wages above the minimum wages could get increased chance of being employed from this policy. In contrast, most of the estimates for people who work very few hours are insignificant. However, in the industries with higher proportions of low wage workers, that is, in retail trade and food industries, the probability of being employed for these employees is reduced. The major policy implication is that our empirical findings throw light on the importance of distinguishing between industries and between workers with different earnings."

The effect of minimum wages on consumption in Canada

2020 ◽  
pp. 103530462094995
Author(s):  
Young Cheol Jung ◽  
Adian McFarlane ◽  
Anupam Das
Keyword(s):  
Minimum Wage ◽  
Adult Population ◽  
Retail Trade ◽  
Minimum Wages ◽  
The Real ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Lag Model ◽  
Wage Increases

We use Canadian data over the period of 1991Q1 to 2019Q2 to examine the effect of higher minimum wages on consumption, measured as the real retail trade sales per adult population. Such an examination is rare in the extant literature and it is timely given the increasing debate concerning the stimulus versus inflationary effects arising from wage polices because of COVID-19 global pandemic. We apply the autoregressive distributed lag model to determine the causal relationship between these variables. We find one long-run cointegrating relationship that runs from the real minimum wage to the real retail trade sales. In addition, we find that a 1% increase in the minimum wage is associated with almost a 0.5% increase in real retail trade sales in the long run. While our findings rest on several statistical assumptions, there is strong evidence in support of the position that minimum wage strengthens aggregate consumer spending, and thereby the standard of living, economic growth and stability. This is a position that differs from the conclusions drawn from mainstream academic and policy debates on the economic usefulness and efficacy of minimum wage increases. JEL Codes: C30, E21, E24

scholarly journals Political Variables as Instruments for the Minimum Wage

2005 ◽  
Vol 4 (1) ◽  
Author(s):  
Sara Lemos
Keyword(s):  
Simultaneous Determination ◽  
Minimum Wage ◽  
Voting Behavior ◽  
Empirical Studies ◽  
Personal Characteristics ◽  
Minimum Wages ◽  
Weak Relationship ◽  
Theoretical Approaches ◽  
Political Variables

Abstract A number of recent empirical studies have found no evidence that the minimum wage adversely affects employment. Explanations for such non-negative estimates include new theoretical approaches, empirical identification and data issues. In this paper we examine the robustness of such estimates to concerns about bias arising from the simultaneous determination of employment and the minimum wage. We use a number of novel political variables as instruments to control for this source of endogeneity. We exploit the personal characteristics of the politicians voting on minimum wage bills, their voting behavior and their electoral process. Our main conclusion is that the weak relationship between minimum wages and employment does not appear to be driven by endogeneity.

scholarly journals Minimum wages and the fate of Indonesian young workers

2020 ◽  
Vol 18 (2) ◽  
pp. 105-118
Author(s):  
Izzun Nafiah
Keyword(s):  
Interest Rates ◽  
Minimum Wage ◽  
Urban Areas ◽  
Labour Force ◽  
Minimum Wages ◽  
The Other ◽  
Logit Analysis ◽  
Young Workers ◽  
Wage Policy ◽  
Other Hand

Government policies that are directly related to the relationship between workers and companies are determining minimum wages. The effect of this minimum wage becomes more varied for developing countries with large populations such as Indonesia. Young workers have sensitive effect to fluctuation of the minimum wage policy, whereas the percentage of Indonesia young workers is more than 20 percent of the total workforce in 2015-2019. Therefore, the aim of this research is to analyze the effect of minimum wage policies on the status of young workers in Indonesia using quantitative data from the National Labour Force Survey (Sakernas) 2015-2019 with the multinomial logit analysis method. The results of this study are an increase in the minimum wage decreases the probability of young workers to have status as paid workers in the covered sector. In urban areas, an increase in the minimum wage increases the probability of young male workers being unemployed and decreases the probability being self-employed. On the other hand, an increase in the minimum wage causes female urban workers reducing the probability of being unemployed and increasing the probability of them being self-employed. Therefore, the minimum wage policy must be balanced with strengthen the education and training and also consider policies that increase youth labor market opportunities but do not increase employer costs for young workers. On the other hand, the government must be continuous to improve policies that support the progress of informal sector, for example in terms of providing capital, reducing loan interest rates, etc.

scholarly journals Modern remuneration system in foreign country

2020 ◽  
Vol 11 (1) ◽  
pp. 40-47
Author(s):  
L. V. Gutsalenko ◽  
◽  
D. O. Mokiienko
Keyword(s):  
Minimum Wage ◽  
Positive Impact ◽  
Political Influence ◽  
The United States ◽  
Minimum Wages ◽  
Annual Income ◽  
Wage Policy ◽  
Additional Payments ◽  
Foreign Countries ◽  
Main Components

The article describes the formation features of modern remuneration systems, taking into account the main aspects and methods of labour organization in foreign countries. It also determines the requirements for compulsory salary increase in certain foreign countries. The article focuses on the observers’ forecast of remuneration level changes and the formation of five trends in employee salary and additional payments, such as: regular bonus payments for performance; transparent remuneration; more employees will receive bonuses; analysis of equity aimed at remuneration payments; the formation by states of their own minimum wage policy. It notes that there has been a positive economic change and an increase in demand among states due to increased political influence on the establishment of minimum wages. The data on the minimum wage for January 2020 has been studied and it was pointed that in 2020 Ukraine took the fifteenth place out of 54 countries in the growth rating of minimum wages in the world. Moreover, the main components of the system used at enterprises to provide incentives and increase productivity of employees have been determined. It is also noted that in some foreign countries there is a tendency to regulate and establish maximum wages of intellectual workers. The article gives a comparative analysis of wages of intellectual workers versus manual workers; and it indicates that the wages of intellectual workers are on average higher than wages of manual workers: in Germany – by 20%; in Italy and Denmark — by 22 %; in Luxembourg — by 44 %; in France and Belgium — by 61 %. In comparison with qualified workers, craftsmen earn more: in Germany – by 15%; in the Netherlands — by 23 %, in France— by 30 %, in Belgium — by 40 %. In the United States, lower-level executives (craftsmen, group and sector leaders) have an annual income on average 1.5 times higher than an annual income of manual workers. The article points out that foreign countries tend to use and combine various remuneration systems, each of which consists of two parts: basic (permanent) and additional (variable). It has been suggested to improve and develop new approaches to provide incentives for employees of domestic enterprises that will have a positive impact on their performance.

The Effects of Minimum Wages on Tipping: A State-Level Analysis

2020 ◽  
Vol 52 (3) ◽  
pp. 98-108
Author(s):  
Michael Lynn
Keyword(s):  
Minimum Wage ◽  
State Level ◽  
Minimum Wages ◽  
Future Research ◽  
Cost Of Living ◽  
Wage Policy ◽  
Coffee Shops ◽  
Level Analysis

Analyses of state differences in minimum wages and tip percentages found that (1) states with higher regular minimum wages have lower average tip percentages in coffee shops and higher average tip percentages in restaurants (after controlling for tipped minimum wages and cost-of-living) and (2) states with higher tipped minimum wages have lower average tip percentages in restaurants and higher average tip percentages in coffee shops (after controlling for regular minimum wages and cost of living). Although the data are only correlational and do not prove causality, these findings support the idea that paying tipped workers higher wages decreases the tip percentages those workers receive. Discussion centers on the potential processes underlying such an effect, its implications for minimum wage policy and directions for future research.

scholarly journals KEBIJAKAN UPAH MINIMUM KABUPATEN/KOTA : STUDI IMPLEMENTASI PADA PERUSAHAAN DI KABUPATEN KARAWANG

2020 ◽  
Vol 8 (3) ◽  
pp. 71-78
Author(s):  
Siska Widianti Motip ◽  
Hanny Purnamasari Purnamasari ◽  
Ani Nurdiani Azijah
Keyword(s):  
Minimum Wage ◽  
Data Reduction ◽  
Qualitative Approach ◽  
Minimum Wages ◽  
Wage Policy ◽  
Data Presentation ◽  
Analysis Techniques ◽  
Depth Interviews ◽  
Descriptive Method

This research is motivated by a phenomenon in society that increases the amount of minimum wages especially in Karawang Regency, every year it creates problems including reduction workers/laborers and companies that have closed or moved out of the region because they are unable to pay the amount of wages minimum in Karawang Regency. From the background descrition, the purpose of this study is to know The success of implementing policies on district / city minimum wages in companies in Karawang Regency according to the theory of implementation of Van Meter and Van Horn (in Winarno, 2013: 158). Method this research uses descriptive method with a qualitative approach. Data obtained through literature and in-depth interviews with informants related to the focus of this research. Processing and analysis techniques the data is carried out through three activities that occur simultaneously, namely data reduction, data presentation and conclusion or verification. Based on the research results that the implementation of the minimum wage policy the companies in Karawang Regency are running well and smoothly, but there are several shortcomings that needs attention. Such as legal imperfections or legal defects that occur during deliberation determination of the 2020 UMK Karawang because there is no agreement between the entrepreneur and the worker/laborer.

scholarly journals DISKRESI DALAM PENETAPAN UPAH MINIMUM OLEH GUBERNUR

2016 ◽  
Vol 1 (1) ◽  
pp. 61
Author(s):  
Setyo Pamungkas
Keyword(s):  
Social Justice ◽  
Minimum Wage ◽  
Social Protection ◽  
The State ◽  
Minimum Wages ◽  
Equal Protection ◽  
Living Standard ◽  
Wage Policy

<p>Abstrak<br />Upah minimum bertujuan untuk memberikan perlindungan bagi pekerja dari upah yang<br />terlalu rendah. Upah minimum mendorong terwujudnya keadilan bagi pekerja-pengusaha,<br />dan pemenuhan kebutuhan hidup minimal bagi semua yang bekerja dan yang memerlukan<br />perlindungan. Upah minimum ditetapkan oleh Gubernur. Gubernur dalam menetapkan<br />upah minimum dapat menggunakan pertimbangannya sendiri tentang upah yang layak,<br />karena pekerja/buruh tidak boleh dibayar di bawah nilai kebutuhan hidup layak dan<br />perlindungan sosialnya. Gubernur juga berperan penting dalam mengembangkan kebijakan<br />upah minimum. Jadi, Gubernur dapat melakukan diskresi untuk memastikan bahwa<br />keadilan sosial dapat dicapai melalui kebijakan upah minimum. Akan tetapi, diskresi<br />tersebut harus benar-benar memastikan negara memberikan perlindungan yang sama<br />bagi pekerja dan pengusaha.<br /><br /></p><p>Abstract<br />The establishment of minimum wage standard aims to provide protection for workers from<br />wages that are too low. The minimum wage standard encourage the achievement of justice<br />for workers as well as employers, and the minimum subsistence for all workers whose<br />living standard needs to be protected. The minimum wage is established by the provincial<br />governor, who may at his/her discretion establish the minimum wage at the rate she/he<br />deemed decent, since for workers /laborers should not be paid below the needs of decent<br />living and of social protection. The governor also plays an important role in developing<br />policies on minimum wages. Therefore, the governor may excercise his/her discretion to<br />ensure that social justice can be achieved through the minimum wage policy. However,<br />such discretion must assure that the state provides equal protection for workers and<br />employers.</p>

PENGARUH UPAH MINUMUM TERHADAP TENAGA KERJA DI NEGARA DENGAN TINGKAT PENGHASILAN RATA-RATA YANG RENDAH

2017 ◽  
Vol 6 (2) ◽  
Author(s):  
Veny Anindya Puspitasari
Keyword(s):  
Minimum Wage ◽  
Basic Needs ◽  
Wage Policy ◽  
Average Income ◽  
Income Per Capita ◽  
Unskilled Workers ◽  
Water Association ◽  
International Water ◽  
Per Capita ◽  
Association Data

<p>The minimum wage is a macroeconomic issue that is still debated, Basically, the minimum wage policy aimed to protect workers, so that thet earn an adequate wages to finance the basic needs of their life. Practically, the minimum wage policy often encounters its purpose because it is regarged as miserable for those who have no expertise. This phenomenon is mainly happening in the low –avegrage- income countries that have many unskilled workers. Gahana, Indonesia, Costra Rica were used to be analyzed in this paper. According to International Water Association data year 2006, those countris earn income per capita less than US$ 9,200 and were categorized as low average – income countries. This research found that minimum wage impelentation in all three countries was not effective. When minimum wage policy was implemented, a lot of people felt aggrieved.</p><p>Keywords : Economic polict, Minimum wage, Income</p>

Emerging Syndromes

2017 ◽  
Author(s):  
Kelly C. Allison ◽  
Jennifer D. Lundgren
Keyword(s):  
Empirical Studies ◽  
Theoretical Models ◽  
Future Research ◽  
Night Eating Syndrome ◽  
Statistical Manual ◽  
Night Eating ◽  
Diagnostic And Statistical Manual ◽  
Impairment In Functioning ◽  
Atypical Anorexia Nervosa ◽  
Comorbid Psychopathology

The Diagnostic and Statistical Manual, fifth edition, of the American Psychiatric Association (2013) has designated several disorders under the diagnosis of otherwise specified feeding and eating disorder (OSFED). This chapter evaluates three of these, night eating syndrome (NES), purging disorder (PD), and atypical anorexia nervosa (atypical AN). It also reviews orthorexia nervosa, which has been discussed in the clinical realm as well as the popular press. The history and definition for each is reviewed, relevant theoretical models are presented and compared, and evidence for the usefulness of the models is described. Empirical studies examining the disorders’ independence from other disorders, comorbid psychopathology, and, when available, medical comorbidities, are discussed. Distress and impairment in functioning seem comparable between at least three of these emerging disorders and threshold eating disorders. Finally, remaining questions for future research are summarized.

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