scholarly journals Los impactos de la nueva política de salario mínimo. El caso de Jalisco y Baja California

2020 ◽  
pp. 25-48
Author(s):  
José Maria Ruíz ◽  
◽  
Emilia Gamez Frias

In 2019, a new minimum wage policy is promoted that configures two wage regions: the free zone of the northern border of Mexico and the rest of the country. For the first region an increase of 100 percent is authorized and for the second of 16.2 per-cent. Our objective is to analyze the impact that, in 2019, the differential increase of the minimum wage in the generation of new jobs of the salaried labor force (target population of the minimum wage) of Jalisco (emblematic entity of the rest of Mexico region) and of Baja California (entity of the region of the free zone of the northern border of Mexico) contrasting it with the national average in three levels: occupa-tional structure, sector and economic activity and by size of establishment, as well as by sex. The statistical evidence is processed by the national survey of occupation and employment (ineGi).

2020 ◽  
Vol 3 (2) ◽  
pp. 93
Author(s):  
Muhamad Rizal ◽  
Anang Muftiadi

It has become a common tradition that in November every year, each Governor is obliged to set a UMP and can (not must) determine Regental/Municipal Minimum Wage (UMK). This is regulated by PP 78 of 2015 concerning Wages. This wage policy regulates the minimum wage that must be paid by employers to all workers without exception. Every year, this wage arrangement has become a problem for the industry, especially labor-intensive industries. This industry contributed to employment for people who had only low education around the company and its supporting areas. However, wages that were getting higher each year caused companies to enter the non-compliment category of buyers. This choice was what caused many companies to relocate or permanently disband their companies. Deferral of payment was not a solution for the company. In fact, it dragged them to bankruptcy. Governor of West Java’s SE No. 561/75/Yanbangsos/2019 concerning the Implementation of MSEs in West Java had become a breath of fresh air for the investment climate in West Java. However, this SE did not last long because of the high pressure of interest on the Governor of West Java. This article was carried out to analyze the impact of the revocation of the SE and the change to a decree, which stagnated the industry and reduced its production resulting in massive layoffs in several Regencies and Cities in West Java.


1993 ◽  
Vol 27 (4) ◽  
pp. 772-795
Author(s):  
Carlos E. Santiago

Minimum wage research has historically focused on labor mobility between covered and uncovered labor markets within a geographic area. This study examines the impact of minimum wage setting on labor migration. A multiple time series framework is applied to monthly data for Puerto Rico from 1970–1987. The results show that net emigration from Puerto Rico to the United States fell in response to significant changes in the manner in which minimum wage policy was conducted, particularly after 1974. The extent of commuter type labor migration between Puerto Rico and the United States is influenced by minimum wage policy, with potentially important consequences for human capital investment and long-term standards of living.


2019 ◽  
Vol 11 (9) ◽  
pp. 2542
Author(s):  
Eva Militaru ◽  
Madalina Ecaterina Popescu ◽  
Amalia Cristescu ◽  
Maria Denisa Vasilescu

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.


2016 ◽  
Vol 1 (1) ◽  
pp. 78-83
Author(s):  
Ung Leng Yean ◽  
Tee Peck Ling ◽  
Chung Chay Yoke ◽  
Jayamalathi Jayabalan ◽  
Pok Wei Fong ◽  
...  

Objective - This study's aim is to identifies the minimum wage policy implementation and its impact on SMEs in Malaysia. It addresses the question of the level of SME's awareness and their readiness towards the implementation of the policy and improving productivity. Methodology/Technique - Data were collected through questionnaire distribution and literature study.Analysis was conducted via a descriptive method. Findings - The solutions identified in addressing the problem include the need to increase labour productivity, lower operational costs and change organizational methods. Novelty - The discussions of this paper provide an in-depth understanding of the issues related to how the policy affects company's competitive advantage and financial performance. Type of Paper: Empirical Keywords: Minimum Wage Policy; Malaysia; SMEs, Manufacturing Sectors; Productivity.


2020 ◽  
Vol 12 (2) ◽  
pp. 185-197
Author(s):  
Ann Selvaranee Balasingam ◽  
Kashif Hussain ◽  
Alwie Manaf

Purpose The purpose of this paper is to investigate and compare the impact of the minimum wage order from the perspectives of two different stakeholders, namely, hotel managers and employees, in the Malaysian hotel industry. Design/methodology/approach For the study, qualitative data were collected through semi-structured interviews from three managers and three employees from hotels in West Malaysia. Findings From the managers’ perspective, minimum wage implementation has resulted in managers adopting the best payment structure to reduce labour costs for the operators, deciding to reduce the service charge allocation to employees and having to deal with minimal improvement in employee productivity and motivation. In contrast, the positive impact from the managers’ perspective is lower turnover intentions and social justice for foreign workers. From the employees’ perspective, there is a rather negative impact – minimum wage policy has resulted in a minimal increase in the salary. From a positive perspective, employees said that they have experienced an improvement in living standards. Originality/value This research presents current responses from hotel participants regarding the latest wage increase impact, some six years after its implementation.


Author(s):  
Aneta Mikuła

The minimum wage is the wage policy instrument, entailing both economic and social consequences. Supporters of the minimum wage emphasize its role in reducing poverty and reducing income inequalities. In turn, opponents focus on its economic effects, i.e. increase in labor costs and decline in employment. The article focuses on identifying the impact of the minimum wage on reducing poverty and income inequality. The first part contains definitions and the economic and social functions of the minimum wage. The next section presents changes in the minimal salary level in Poland and its relation to the average salary in the years 2003–2014. The rest of the article attempts to assess the effectiveness of raising the minimum wage in combating poverty and reducing income inequality. The effectiveness of this solution is minimal, both in terms of the whole society, as well as socio-economic group, which should benefit most from these effects, i.e. employees.


Author(s):  
Jennifer Otten ◽  
James Buszkiewicz ◽  
Wesley Tang ◽  
Anju Aggarwal ◽  
Mark Long ◽  
...  

2021 ◽  
Vol 22 (1) ◽  
pp. 422-430
Author(s):  
Vally Senasi ◽  
Samihah Khalil @ Halim ◽  
Balakrishnan Parasuraman

Wage are the greatest pushing factor for many workers to work and positively relates to employee life satisfaction. Meanwhile, fringe benefits improve the skills and knowledge of workers and enhance the organization’s reputation. Minimum wage policies around the world uphold the principle to provide a basic living wage for their workers. Nevertheless, the impact of national minimum wage policy on Malaysian employees, in particular, was the least explored since enacted into law in 2012. This study examines the minimum- wage impact on low-level skilled workers in the electrical and electronics industry in Malaysia. Minimum wage can have an effect on labor productivity and fringe benefits, particularly training, allowances, and insurance, have become important research topics. As such, this research discusses the effect of minimum wages on labor productivity and fringe benefits of employees. A semi-structured survey questionnaire was distributed to 600 employees in electrical and electronics firms in Penang and Kulim Industrial Zones. Data from 432 questionnaires were quantitatively analyzed using Exploratory Data Analysis (EDA). The findings suggest that employers should make some adjustments in administering the wage scale due to the implementation of minimum wage national policy that has impacted firms’ costs and incomes. The results also found that the minimum wage affects labor productivity and wage differences among workers. Meanwhile, the minimum wage does not adversely affect the adjustments to the fringe benefits, except for the provision of training. This study recommends more strategic plans and negotiations between stakeholders on wage and fringe benefits that would warrant continuous positive effects for both workers and employers.


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