scholarly journals The minimum wage as a wage equality policy: Evidence from North Macedonia

2019 ◽  
Vol 64 (223) ◽  
pp. 61-81
Author(s):  
Marjan Petreski ◽  
Nikica Mojsoska-Blazevski ◽  
Mariko Ouchi
Keyword(s):  
Minimum Wage ◽  
Labour Force ◽  
Spillover Effects ◽  
Wage Distribution ◽  
Wage Increase ◽  
Current Policy ◽  
Wage Level ◽  
Minimum Wage Increase ◽  
Wage Increases ◽  
Wage Compression

The paper aims to investigate if the minimum wage increase of September 2017 resulted in better wage equality in North Macedonia. The increase of 19% was sizable and included levelling up in the three sectors with a lower minimum wage: textiles, apparel, and leather. We extend the ?cell? approach of Card (1992a) and rely on data from the Labour Force Survey 2017 and 2018. The results suggest that the 2017 increase in the minimum wage had a positive, significant, and robust effect on wages. However, the wage increases were almost entirely positioned on the left side of the wage distribution and implied wage compression up to or around the minimum wage. The bunching around the new minimum wage level ?equalised? workers: those who previously earned the new minimum wage level equalised with the less productive workers who approximated their wage only by the power of the law. Hence, wage equality improved. The results confirm that the minimum wage can be an important wage equality policy, with considerably limited upward spillover effects in the current policy and institutional setup.

scholarly journals The impact of a minimum wage change on the distribution of wages and household income

2020 ◽  
Author(s):  
Paul Redmond ◽  
Karina Doorley ◽  
Seamus McGuinness
Keyword(s):  
Income Distribution ◽  
Minimum Wage ◽  
Wage Inequality ◽  
Household Income ◽  
Spillover Effects ◽  
Wage Distribution ◽  
Wage Increase ◽  
Minimum Wage Increase ◽  
Wage Change ◽  
The Impact

Abstract We use distribution regression analysis to study the impact of a 6% increase in the Irish minimum wage on the distribution of hourly wages and household income. Wage inequality, measured by the ratio of wages in the 90th and 10th percentiles and the 75th and 25th percentiles, decreased by approximately 8 and 4%, respectively. The results point towards wage spillover effects up to the 30th percentile of the wage distribution. We show that minimum wage workers are spread throughout the household income distribution and are often located in high-income households. Therefore, while we observe strong effects on the wage distribution, the impact of a minimum wage increase on the household income distribution is quite limited.

scholarly journals Macroeconomic Effects of Minimum Wage Increases in an Economy with Wage Underreporting

2018 ◽  
pp. 10-33
Author(s):  
Anastasiia Antonova
Keyword(s):  
Financial Markets ◽  
Minimum Wage ◽  
Wage Increase ◽  
Minimum Wage Increase ◽  
Dsge Model ◽  
Macroeconomic Effects ◽  
Wage Increases

I have built a monetary DSGE model to investigate how wage underreporting in an economy characterized by a minimum wage regime affects the macroeconomic response to a minimum wage increase. The model is calibrated and estimated for Ukraine. The main result is that under a higher degree of wage underreporting, the economy is less responsive to a minimum wage shock. Quantitatively, the magnitude of the response to a minimum wage shock is affected by the share of non-Ricardian households, that is, households that do not have access to financial markets and consequently consume all of their income each period.

Spillover effects of a minimum wage increase – evidence from Slovenia

2019 ◽  
Vol 31 (5) ◽  
pp. 603-622
Author(s):  
Suzana Laporšek ◽  
Milan Vodopivec ◽  
Matija Vodopivec
Keyword(s):  
Minimum Wage ◽  
Spillover Effects ◽  
Wage Increase ◽  
Minimum Wage Increase

scholarly journals Adjustments to Minimum Wages in China: Cost-Neutral Offsets

2015 ◽  
Vol 70 (3) ◽  
pp. 510-531 ◽  
Author(s):  
Jing Wang ◽  
Morley Gunderson
Keyword(s):  
Minimum Wage ◽  
Qualitative Interviews ◽  
Unintended Consequences ◽  
Minimum Wages ◽  
Wage Increase ◽  
Minimum Wage Increase ◽  
Overtime Work ◽  
Zero Effect ◽  
Wage Increases ◽  
The Cost

Summary Based on qualitative interviews of workers, managers and labour inspectors in China, we examine how employers adjust, often in subtle fashions, to minimum wage increases. Our findings highlight the “law of unintended consequences” in that their effects are often “undone” or offset by subtle adjustments such as reductions in fringe benefits and in overtime work and overtime pay premiums that are otherwise valued by employees. Employees often feel that they are no better off in spite of minimum wage increases because of these offsetting adjustments. This study also suggests possible reasons for the small or zero effect of minimum wage on employment in China. Lack of enforcement may be one of the reasons, but the employees we interviewed seem well aware of the legal minimum wage and employers do not want to get involved in disputes over this matter. For employers who would otherwise be affected by the minimum wage increase, the cost increase is mitigated by the offsetting adjustments. As a result, minimum wages do not seem to weaken the competitive position of employers in China.

Do Minimum Wage Increases Affect SNAP Benefits?

2019 ◽  
Vol 19 (2) ◽  
Author(s):  
Thomas Snyder ◽  
Senayt Rinkevich ◽  
Weici Yuan
Keyword(s):  
Minimum Wage ◽  
Fixed Effects ◽  
State Level ◽  
Minimum Wages ◽  
Wage Increase ◽  
Minimum Wage Increase ◽  
Assistance Program ◽  
Data Set ◽  
Nutrition Assistance ◽  
Wage Increases

Abstract The recession of the late 2000s accompanied a steep increase in the number of people on the U.S. federal Supplemental Nutrition Assistance Program (SNAP). The economy recovered, yet the number of people on SNAP remained relatively high. This study investigates whether increases in minimum wages affected the number of SNAP beneficiaries and the per-capita cost of the program. Economic reasoning suggests a minimum wage increase can decrease poverty through higher wages or increase poverty by enacting a barrier to work. Using a panel data set (1997–2015) at the state level, two-way fixed effects estimates demonstrate a nonlinear relationship between minimum wages and SNAP benefits. At low minimum wages, increases in the minimum wage reduce SNAP enrollment and benefits; however, at high minimum wages, increases in the minimum wage increase SNAP enrollment and benefits. Twenty states have already passed the minimum wage turning point. Further increases can lead to more SNAP participants.

Lowering wage inequality with the minimum wage increase in Slovenia

2021 ◽  
Vol 13 (3) ◽  
pp. 306
Author(s):  
Suzana Laporšek ◽  
Milan Vodopivec ◽  
Matija Vodopivec
Keyword(s):  
Minimum Wage ◽  
Wage Inequality ◽  
Wage Increase ◽  
Minimum Wage Increase
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