2023-09-28 14:46:10 +00:00
|
|
|
abstract: 'Minimum-wage policy aims to raise the real income of low-wage workers.
|
|
|
|
|
|
|
|
|
|
Low-wage individuals may be adversely affected by minimum wages,
|
|
|
|
|
|
|
|
|
|
however, although the empirical evidence on this point is not without
|
|
|
|
|
|
|
|
|
|
controversy. We analyzed the effects of the January 2012 increase in
|
|
|
|
|
|
|
|
|
|
monthly minimum wages on the wages and hours worked of low-wage workers
|
|
|
|
|
|
|
|
|
|
in Ecuador. Individuals could have chosen to enter occupations covered
|
|
|
|
|
|
|
|
|
|
by minimum-wage legislation or those that were not. We applied a
|
|
|
|
|
|
|
|
|
|
difference-in-differences estimation to account for potential
|
|
|
|
|
|
|
|
|
|
self-selection bias. We also relied on exogenous variations in minimum
|
|
|
|
|
|
|
|
|
|
wages by sector, industry, and occupation. We constructed individual
|
|
|
|
|
|
|
|
|
|
panel data from a household panel and performed estimates that also
|
|
|
|
|
|
|
|
|
|
accounted for potential sample-selection bias. The results suggest a
|
|
|
|
|
|
|
|
|
|
significant and positive effect on the wages of treated workers,
|
|
|
|
|
|
|
|
|
|
increasing them by 0.41-0.48\% for each 1\% increase in minimum wages,
|
|
|
|
|
|
|
|
|
|
relative to the earnings of control workers. Our results also suggest
|
|
|
|
|
|
|
|
|
|
that effects varied by type of worker: (i) women workers received lower
|
|
|
|
|
|
|
|
|
|
wage increases, and their hours worked were significantly and negatively
|
|
|
|
|
|
|
|
|
|
affected, both of which may suggest a failure of the minimum wage to
|
|
|
|
|
|
|
|
|
|
reduce the gender wage gap at the bottom of the distribution, and (ii)
|
|
|
|
|
|
|
|
|
|
the hours worked by young workers were significantly and positively
|
|
|
|
|
|
|
|
|
|
affected, a result that is in agreement with results found elsewhere in
|
|
|
|
|
|
|
|
|
|
the literature. These results persisted after applying robustness checks
|
|
|
|
|
|
|
|
|
|
to account for different control groups, full- vs. part-time jobs,
|
|
|
|
|
|
|
|
|
|
separate regressions for heterogeneous groups, and tests for potential
|
|
|
|
|
|
|
|
|
|
attrition and sample-selection bias. The range of effects observed
|
|
|
|
|
|
|
|
|
|
across disparate groups of workers suggests areas in which policy change
|
|
|
|
|
|
|
|
|
|
could be useful. The income-compression effect we found suggests that
|
|
|
|
|
|
|
|
|
|
further studies should address the effects of minimum wage on the drop
|
|
|
|
|
|
|
|
|
|
in income inequality observed in the data. (C) 2018 Elsevier Ltd. All
|
|
|
|
|
|
|
|
|
|
rights reserved.'
|
|
|
|
|
affiliation: 'Wong, SA (Corresponding Author), ESPOL Polytech Univ, Escuela Super
|
|
|
|
|
Politecn Litoral, Guayaquil, Ecuador.
|
|
|
|
|
|
|
|
|
|
Wong, Sara A., ESPOL Polytech Univ, Escuela Super Politecn Litoral, Guayaquil, Ecuador.'
|
|
|
|
|
author: Wong, Sara A.
|
|
|
|
|
author-email: sawong@espol.edu.ec
|
|
|
|
|
author_list:
|
|
|
|
|
- family: Wong
|
|
|
|
|
given: Sara A.
|
|
|
|
|
da: '2023-09-28'
|
|
|
|
|
doi: 10.1016/j.worlddev.2018.12.004
|
|
|
|
|
files: []
|
|
|
|
|
issn: 0305-750X
|
|
|
|
|
journal: WORLD DEVELOPMENT
|
|
|
|
|
keywords: 'Minimum wage; Difference-in-difference; Hours worked; Heterogeneous
|
|
|
|
|
|
|
|
|
|
effects; Latin America; Ecuador'
|
|
|
|
|
keywords-plus: SAMPLE SELECTION; LABOR-MARKET; EMPLOYMENT
|
|
|
|
|
language: English
|
|
|
|
|
month: APR
|
|
|
|
|
number-of-cited-references: '45'
|
|
|
|
|
orcid-numbers: Wong, Sara/0000-0001-7565-1543
|
|
|
|
|
pages: 77-99
|
|
|
|
|
papis_id: 968853f4326745c24c9cce28048d7be4
|
|
|
|
|
ref: Wong2019minimumwage
|
|
|
|
|
times-cited: '7'
|
|
|
|
|
title: Minimum wage impacts on wages and hours worked of low-income workers in Ecuador
|
2023-10-01 08:15:07 +00:00
|
|
|
type: article
|
2023-09-28 14:46:10 +00:00
|
|
|
unique-id: WOS:000457504700007
|
|
|
|
|
usage-count-last-180-days: '4'
|
|
|
|
|
usage-count-since-2013: '33'
|
|
|
|
|
volume: '116'
|
|
|
|
|
web-of-science-categories: Development Studies; Economics
|
|
|
|
|
year: '2019'
|
