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