Minimum wage compliance and household welfare
An analysis of over 1500 minimum wages in India
Bibliographic Data
| ID | 11915538 |
|---|---|
| Authors | Kashif Mansoor (0000-0002-2773-4608, Babasaheb Bhimrao Ambedkar Bihar University), Dónal O’Neill (0000-0001-5516-2603, National University of Ireland, Maynooth, corresponding author) |
| Year | 2021 |
| Volume | 147 |
| Pages | 105653-105653 |
| Publication date | 2021-08-11 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | World Development (JOURNAL) |
| Journal identifiers | ISSN: 0305-750X • E-ISSN: 1873-5991 |
| Publisher | Elsevier BV (PUBLISHER) |
| DOI | 10.1016/j.worlddev.2021.105653 |
| OpenAlex | W3032040704 |
| Language | EN |
| Citations received | 7 |
| References cited | 44 |
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
Compliance (psychology · Consumption (sociology · De facto · Developing country · Economic growth · Economics · Labour economics · Market economy · Minimum wage · Standard of living · Wage · Welfare · Employment and Welfare Studies · Income, Poverty, and Inequality · Taxation and Compliance Studies
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| Unique citing works | 7 |
|---|---|
| Citations per year | 1,75 |
| Citation span | 2022 - 2026 (5) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 7 |