limitations:dependent on simulation order; can not account for tax evasion, behavioural changes; over-representation of employees in sample; remaining unobservables on inequality outcomes
findings:small decrease in wage inequality; larger impact for women
channels:concentration of workers at minimum wage level matters, women make up larger part; increase in number of wage earners in total number of employees
direction:-1# -1 neg / 0 none / 1 pos
significance:# 0 nsg / 1 msg / 2 sg
notes:does not see minimum wage increase as most efficient income inequality reduction policy per se, but sees efficiency possibly enhanced by accompanying skills development programs
annotation:|
An analysis of the effects of minimum wage increases on income inequality in Romania.
It finds that, generally, minimum wage increases correlate with small wage inequality decreases, but carry a larger impact for women.
The channels for the policies effects are two-fold in that there is an inequality decrease as the number of wage earners in total number of employees increases,
as well as the concentration of workers at the minimum level mattering --- the probable channel for a larger impact on women since they make up larger parts of low-income and minimum wage households in Romania.
Limitations to the study are some remaining unobservables for the final inequality outcomes (such as other wages or incomes), the sample over-representing employees and not being able to account for any tax evasion or behavioural changes.
