Minimum wage compliance and household welfare: An analysis of over 1500 minimum wages in India
研究了印度不同合规程度下最低工资对工资、就业和家庭消费的异质性影响,发现最低工资提高工资和消费,但低合规地区效果大打折扣。
In many developing countries there is a substantial difference between de jure and de facto regulation of minimum wages. We examine the consequences of this by looking at the heterogenous effects of minimum wages across compliance regimes in India. We show that minimum wages have a positive effect on wages, without a corresponding effect on employment. As a result, household consumption increases following increases in the minimum wage. However, the beneficial pass-through to wages and consumption is significantly reduced in low compliance regimes. Labour market reforms can improve workers’ living standards but only if accompanied by effective compliance.