The Consequences of Doubling the Minimum Wage
The Case of Indonesia
Bibliographic Data
| ID | 4573447 |
|---|---|
| Authors | Martin Rama (0000-0001-7018-7526, corresponding author) |
| Year | 2001 |
| Volume | 54 |
| Issue | 4 |
| Pages | 864 |
| Publication date | 2001-07-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Industrial and Labor Relations Review (JOURNAL) |
| Journal identifiers | ISSN: 0019-7939 • E-ISSN: 2162-271X |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/2696117 |
| OpenAlex | W1775147187 |
| Language | EN |
| Citations received | 36 |
| References cited | 14 |
Indonesian minimum wages were tripled in nominal terms, and doubled in real terms, in the first half of the 1990s. The author analyzes data from the 1993 labor force survey to evaluate the effects of this hike on wage earnings and wage employment. The results suggest that the minimum wage hike had a modest impact on Indonesian labor market outcomes, increasing average wages by 5-15% and decreasing urban wage employment by 0-5%. The employment effects, however, varied substantially by firm size: small firms apparently experienced substantial decreases in employment, whereas some large firms actually saw their employment increase. Workers in those large firms, the author concludes, are the evident winners from the minimum wage hike
Earnings · Economics · Efficiency wage · Indonesian · Investment (military) · Labour economics · Minimum wage · Productivity · Wage · Wage share · Firm Innovation and Growth · Global trade and economics · Labor market dynamics and wage inequality
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| Unique citing works | 29 |
|---|---|
| Citations per year | 1,57 |
| Citation span | 2003 - 2026 (24) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 25 |