scholarly journals The effect of increasing the minimum wage on poverty and inequality in Bosnia and Herzegovina

2020 ◽  
Vol 65 (226) ◽  
pp. 121-137
Author(s):  
Amela Kurta ◽  
Nermin Oruc

The minimum wage, as a labour market policy with distributive impact, is widely debated in Bosnia and Herzegovina (BiH). This paper estimates the effect of increasing the minimum wage on poverty and income inequality in BiH, providing the first empirical evidence on the minimum wage in the country. Using data from the Household Budget Survey (HBS) for 2015, the effects of four changes (two per entity) in the minimum wage were simulated using the microsimulation model BiHMOD. First, the effect of the latest changes implemented in the previous period was calculated using the previous minimum wage level as the baseline. Second, the effect of recently proposed changes was simulated using the current level as the baseline. The findings suggest that increasing the minimum wage in BiH has a significant positive effect on poverty reduction, but a limited effect on the level of income inequality. The estimated effects were also calculated for different types of households. The results suggest that a single policy may have unexpected effects if other policies are not taken into account and harmonized accordingly. The findings provide empirical evidence for decision-makers and future policy debate, which is generally missing for this and similar policy issues in BiH.

Author(s):  
Alice Krozer ◽  
Stefanie Garry ◽  
Juan Carlos Moreno-Brid

The literature on minimum wages in Mexico has focused largely on their impact on poverty, and poverty reduction, while their relationship with inequality has not been fully explored. The purpose of this chapter is to examine the status and dynamics of the minimum wage in Mexico and its relation with income inequality from a Latin American comparative perspective. In this context, we are mostly interested in juxtaposing the Mexican experience with the cases of Brazil, Argentina, and Chile, as three countries of roughly comparable economic development in the region pursuing labour policies diametrically opposing those of Mexico. In light of this Mexican exceptionality, we analyse the relationship between minimum wages and inequality in the country, and what Mexico could learn from the diverging experience of the other countries, with the aim of providing some recommendations to policymakers.


2021 ◽  
pp. 1-44
Author(s):  
SÈNA KIMM GNANGNON

The effectiveness of Aid for Trade (AfT) interventions, including with respect to recipient countries’ trade performance, has now been well explored in the literature. However, in spite of the voluminous literature on the poverty effect of the total official development aid, the effect of AfT flows on poverty has received little attention on the empirical front. This paper aims to contribute to the policy debate on this matter by investigating the effect of AfT flows on poverty in recipient countries. In particular, the analysis explores whether this effect translates through countries’ level of export product concentration, as the latter can influence income inequality, and hence the transformation of economic growth into poverty reduction in recipient countries. The empirical analysis, based on 100[Formula: see text]AfT recipient countries, has shown that AfT interventions are associated with poverty reduction in countries that diversify their export products, including toward manufacturing products. Additionally, AfT flows dampen the positive poverty effect of income inequality, and lead to greater poverty reduction in countries with a great extent of fiscal redistribution. Finally, the analysis has shown that AfT interventions mitigate the positive poverty effect of import product concentration. These results have important policy implications.


ILR Review ◽  
1994 ◽  
Vol 47 (2) ◽  
pp. 319-329 ◽  
Author(s):  
Stephen Machin ◽  
Alan Manning

Using data on Wages Council coverage from the United Kingdom New Earnings Survey, the authors examine the impact of mandated minimum wages on wage dispersion and employment in the United Kingdom in the 1980s. They find evidence that a dramatic decline in the toughness of the regulation imposed by the Wages Councils through the 1980s—a decline, that is, in the level of the minimum wage relative to the average wage—significantly contributed to widening wage dispersion over those years. There is, however, no evidence of an increase in employment resulting from the weakening bite of the Wages Council minimum pay rates. Instead, consistent with the conclusions of several recent U.S. studies, the findings suggest that the minimum wage had either no effect or a positive effect on employment.


2019 ◽  
Vol 26 (2) ◽  
pp. 233-256 ◽  
Author(s):  
Lei Zhao ◽  
Xin Xia

This study empirically examines whether tourism affects poverty reduction based on the panel data of Chinese provinces for the period from 1999 to 2014. Using more comprehensive Foster–Greer–Thorbecke index to decompose poverty into three indices, namely, headcount ratio, poverty gap, and poverty severity, we investigate the relationship between tourism and poverty indices within a single framework. The empirical analysis indicates that tourism has a positive effect on poverty reduction and the concomitant inequality in the distribution of income among the poor could weaken the poverty reduction effect of tourism. China’s western provinces confirm a stronger relationship between tourism and poverty reduction, although the effect of tourism on poverty in the eastern provinces is nearly negligible. We also identify possible mechanisms by which tourism may have an impact on poverty. The results provide empirical evidence to provide an improved assessment of the pro-poor effect of tourism in China.


2015 ◽  
Vol 370 (1681) ◽  
pp. 20140277 ◽  
Author(s):  
Georgina G. Gurney ◽  
Robert L. Pressey ◽  
Joshua E. Cinner ◽  
Richard Pollnac ◽  
Stuart J. Campbell

Despite the prevalence of protected areas, evidence of their impacts on people is weak and remains hotly contested in conservation policy. A key question in this debate is whether socioeconomic impacts vary according to social subgroup. Given that social inequity can create conflict and impede poverty reduction, understanding how protected areas differentially affect people is critical to designing them to achieve social and biological goals. Understanding heterogeneous responses to protected areas can improve targeting of management activities and help elucidate the pathways through which impacts of protected areas occur. Here, we assessed whether the socioeconomic impacts of marine protected areas (MPAs)—designed to achieve goals for both conservation and poverty alleviation—differed according to age, gender or religion in associated villages in North Sulawesi, Indonesia. Using data from pre-, mid- and post-implementation of the MPAs for control and project villages, we found little empirical evidence that impacts on five key socioeconomic indicators related to poverty differed according to social subgroup. We found suggestive empirical evidence that the effect of the MPAs on environmental knowledge differed by age and religion; over the medium and long terms, younger people and Muslims showed greater improvements compared with older people and Christians, respectively.


Author(s):  
Mesele Araya ◽  
Tassew Woldehana

This chapter looks at trends in poverty and inequality at national and regional levels in Ethiopia during the period 1995/6–2015/16. The data indicate that poverty in Ethiopia has shown a substantial decline over this period, with the share of population living under the national absolute poverty line reduced from almost one in two Ethiopians in 1995/6 to about one in four in 2015/16. Results from growth–inequality poverty decomposition indicate that the declines in the absolute poverty rates are accounted for by changes in the rate of economic growth rather than by distribution of wealth. While Ethiopia still has a low level of income inequality, the upward trend in the Gini coefficient from 0.29 in 1995/6 to almost 0.33 in 2015/16 may constrain the scope for further poverty reduction, suggesting a need for policies that consider growth and redistribution at the same time.


Author(s):  
Lan Ho Hoang ◽  
Thuong Phan Thi Hoai

Using data from 22 transition economies over the period of 2005 to 2015, this paper uses a two-stage least squares model and two different financial inclusion index to investigate the impact of financial inclusion on income inequality. We find that there is a negative relationship between financial inclusion and income inequality in these transition economies. The paper also suggests some policy recommendations to reduce income inequality through developing financial inclusion.


2013 ◽  
Vol 1 (2) ◽  
pp. 140-158 ◽  
Author(s):  
Nurul Indarti ◽  
Theo Postma

Innovative companies generally establish linkages with other actors and access external knowledge in order to benefit from the dynamic effects of interactive processes. Using data from 198 furniture and software firms in Indonesia, this study shows that the quality of interaction (i.e. multiplexity) as indicated by the depth of knowledge absorbed from various external parties and intensity of interaction (i.e., tie intensity) are better predictors of product innovation than the diversity of interaction.


2019 ◽  
Vol 14 (2) ◽  
pp. 119
Author(s):  
Riza Syahputera ◽  
Martha Rianty

AbstractThis study aims to determine the effect of the role of the Chairperson and Cooperative Manager in the preparation and application of Financial Statements based on SAK ETAP in cooperatives in the city of Palembang. This research is a quantitative study using data obtained from questionnaires and measured using a Likert scale. The sampling technique used is purposive sampling. The sample used in this study was the Chairperson of the cooperative and the manager of the cooperative in the city of Palembang. The cooperatives studied were 203 cooperatives. The data analysis technique used is multiple linear regression test. The results showed that the role of cooperative leaders and managers had a significant positive effect on the preparation and application of SAK ETAP-based financial statements.Keywords : chairman, manager, SAK ETAP, cooperative


Sign in / Sign up

Export Citation Format

Share Document