Marty Oehme
6e4f19ac3f
Fixed the measures and directions collected to use Gini, Atkinson, .. measures or absolute employment, poverty, etc.
59 lines
2.9 KiB
YAML
59 lines
2.9 KiB
YAML
author: Wong, S. A.
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year: 2019
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title: "Minimum wage impacts on wages and hours worked of low-income workers in Ecuador"
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publisher: World Development
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uri: https://doi.org/10.1016/j.worlddev.2018.12.004
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pubtype: article
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discipline: development
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country: Ecuador
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period: 2011-2014
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maxlength: 12
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targeting: implicit
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group: wage workers
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data: national employment survey (ENEMDU)
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design: quasi-experimental
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method: difference-in-difference approach
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sample: 1_624_422
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unit: individual
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representativeness: national
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causal: 1 # 0 correlation / 1 causal
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theory:
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limitations: some small sort-dependency in panel data; can only account for effects in period of economic growth
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observation:
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- intervention: minimum wage
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institutional: 1
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structural: 1
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agency: 0
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inequality: income
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type: 0 # 0 vertical / 1 horizontal
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indicator: 1 # 0 absolute / 1 relative
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measures: Gini coeff
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findings: decreased income inequality through significant increase on income of low-wage earners; larger effect for agricultural workers, smaller for women; potentially negative impact on income of high-earners
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channels: income-compression effect
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direction: -1 # -1 neg / 0 none / 1 pos
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significance: 2 # 0 nsg / 1 msg / 2 sg
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- intervention: minimum wage
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institutional: 1
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structural: 1
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agency: 0
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inequality: income
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type: 0 # 0 vertical / 1 horizontal
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indicator: 0 # 0 absolute / 1 relative
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measures: hours worked
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findings: significant effect on hours worked; no significant spillover effect on workers in control group; significant negative impact on female hours worked
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channels: possibly decreased intensive margin for female workers; affecting lower income increase of women
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direction: 1 # -1 neg / 0 none / 1 pos
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significance: 0 # 0 nsg / 1 msg / 2 sg
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notes:
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annotation: |
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A study looking at the impacts of minimum wage increases in Ecuador specifically on the income and hours worked of low-wage earners.
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It finds that, generally, there was a significant increase on the income of low-wage earners and also a significant increase on wage workers hours worked which would reflect positively on a decrease in the country's income inequality.
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At the same time, it finds some potential negative effects on the income of high earners, suggesting an income-compression effect as employers freeze or reduce high-earners wages to offset low-earners new floors.
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The findings hide internal heterogeneity, however:
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For income the effect is largest for agricultural workers while for women the effect is significantly smaller than overall affected workers.
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For hours worked there is a significant negative impact on women's hours worked, a fact which may point to a decreased intensive margin for female workers and thus also affect their lower income increases.
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Limitations of the study include some sort-dependency in their panel data and only being able to account for effects during a period of economic growth.
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