• Title/Summary/Keyword: Minimum Wages

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Minimum Wages and Employment of Youth, Old, and Woman by Region : With Special Reference to Use of Wage Distribution Differentials among Regions (최저임금과 지역별 청년·장년·여성 고용 - 지역 간 임금분포 격차 활용을 중심으로 -)

  • Bai, Jin Han
    • Journal of Labour Economics
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    • v.42 no.1
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    • pp.1-42
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    • 2019
  • In this study we find that relatively high minimum wages should make the employment ratios of youth, old, and woman lower very significantly in those regions concerned, futhermore, make the overall employment ratios of those regions lower also by using a proxy variable, the Regional Minimum Wages-Half Median Wages Ratio which represents well the very stable differential structure of wage distributions among regions in Korea. In large Cities those effects become much stronger. But we find also that those effects on the rates of regional unemployment are somewhat double-faced except the case of youth because of the probable generating of many discouraged unemployed among the old and women. So, we can conclude that because of the differential regional economic situations it is not sustainable to increase the overall minimum wages uniformly and excessively and strongly necessary to explore ways toward introducing the proper system of regional minimum wages.

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The Effect of Minimum Wages on New Hiring of Low-wage Workers (최저임금의 저임금 근로자의 신규 채용 억제효과)

  • Kim, Dae Il
    • Journal of Labour Economics
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    • v.35 no.3
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    • pp.29-50
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    • 2012
  • This paper estimates the effect of minimum wages on new hiring of low wage workers from a time-series. The results indicate that minimum wages tend to reduce the new hiring of low wage workers, in particular, among women, less educated and older population. The strongly negative effect on new hiring suggests that the burden of reduced labor demand arising from higher minimum wages tend to fall mostly upon the unprotected low-wage job searchers due to the short-term rigidity of employment adjustment among the existing workers.

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Analysis of Wage Compression Effect of the Minimum Wage within Establishment (최저임금의 사업체 내 임금압축 효과)

  • Kang, Seungbok
    • Journal of Labour Economics
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    • v.39 no.4
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    • pp.31-56
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    • 2016
  • This study analyzes the effect of a minimum wage on the wage compression within Korean establishments. The results are as follows. Firstly, increases of a ratio of workers who get minimum wage within establishments have a effect to compress the wage distribution within establishments. Secondly, the establishment average wages get lower as their minimum wage ratios get larger. In this situation, high wage group's wages fall deeply than low wage group's these. Thirdly, the relative wages of high wage group to low wage group tend to be small as their minimum wage ratios get larger. To conclude, a increase of minimum wage has a effect to raise low wage workers' wages directly, and to reduce high wage workers' wages or increase rates indirectly. And the wage distributions are compressed as a result. So government's policy to increase minimum wage will have a result in reducing wage inequality.

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Minimum Wages and Firm Exports: Evidence from Vietnamese Manufacturing Firms

  • Nguyen, Dong Xuan
    • East Asian Economic Review
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    • v.25 no.1
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    • pp.99-121
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    • 2021
  • This paper investigates the relationship between the minimum wage and firm's export behavior by using firm-level data of Vietnamese manufacturing enterprises over the period 2010 through 2015. In this regard, I apply the logistic regression model for the probability of exporting and the differences-in-differences analysis to the data, and find that raising minimum wage standards drive no new exporters but a rise in a firm's export sales. Less productive and more labor-intensive firms raise their amount of exports in response to increasing minimum wage levels. Being exposed to increasing minimum wage levels makes a firm under-perform in terms of export sales compared to non-exposed firms.

Minimum Wages and Wage Inequality in the OECD Countries

  • Joe, Dong-Hee;Moon, Seongman
    • East Asian Economic Review
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    • v.24 no.3
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    • pp.253-273
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    • 2020
  • This paper investigates the impact of the effective minimum wage, defined as the log difference between the minimum and the median wages, on wage inequalities in the OECD countries. Unlike the previous studies that focus on single countries in which the minimum wage has no cross-sectional variation and rely instead on within-country variations of wage distribution across regions or socio-economic characteristics, we use a country panel that allows for both cross-sectional and time-series variations in minimum wage. We also control for more factors than in the previous studies whose absence may cause endogeneity. Our results confirm the previous findings that increases in minimum wage alleviate the wage inequality at the lower tail of the wage distribution, while having little effect at the upper tail. The estimated effect is larger for women than for men, which is consistent with the fact that the share of workers who are directly affected by the changes in minimum wage is bigger among women than men. An application of the IVs of Autor, Manning and Smith (2016) supports the robustness of our findings.

Validity of Living Wages from a Policy Instruments Viewpoint : Focusing on Systems Thinking (정책수단의 관점에서 생활임금제의 타당성 : 시스템사고를 중심으로)

  • Choi, Ho-Taek;Jung, Seok-Hwan
    • The Journal of the Korea Contents Association
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    • v.15 no.12
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    • pp.185-192
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    • 2015
  • This study analyzed the spatial interrelation between living wages and economic variables and how they operate based on systems thinking theory to understand what value living wages have as policy instruments and why they are necessary. Results from this study can be summed as follows. First, the relationship between living wages and economic variables shows close interaction at a considerable level. In particular, mutual feedback which connects to laborers' standards of living, consumption, business, and economy was operating closely. Second, largely three positive (+) feedback loops were operating in the feedback structure of living wages and economic variables. This can be interpreted to mean that positive economic variables which are associated with living wages have the possibility of growth. Also, it can mean that the minimum wage system did not fully fulfill its role. Through these study results, it can be learned that living wages have sufficient value as a policy means and that it is advisable to allow living wages to exceed simple application levels in the public sector to expand into the private sector, to bring positive change to the economic system.

The Effects of Introduction of Minimum Wages on Labor Demand in Korea: An Empirical Study for Security Workers (최저임금제가 노동수요에 미치는 효과: 감시단속 근로자에 대한 실증분석)

  • Nam, SungIl
    • Journal of Labour Economics
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    • v.31 no.3
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    • pp.1-19
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    • 2008
  • This is an empirical study in Korea on the effects of the minimum wage. Based on the survey data of security workers of 132 apartment in Seoul metro area, the study finds that the introduction of minimum wage in this sector in 2007 raised wage by 10.9%, reduced employment and work hours by 3.5-4.1% and 13.5% respectively. This implies a short run wage elasticity of employment of -0.312 but much higher elasticity of work hours of -1.68.

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Factors for the Decline of the Self-employed in Korea: A Search and Matching Model Approach

  • KIM, JIWOON
    • KDI Journal of Economic Policy
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    • v.44 no.2
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    • pp.45-71
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    • 2022
  • This paper studies potentially relevant factors affecting changes in the number of self-employed in Korea during the period of 1986-2018. The number of self-employed had increased steadily until 2002 but started to decrease around that time and had continued to decline. The increasing trend in the number of self-employed during 1986-2001 is mostly explained by demographic changes, whereas the declining trend during 2002-2018 cannot be explained by demographic factors. In this study, I consider four institutional factors that potentially affect the decrease in the number of self-employed after 2002: i) a decrease in the job-separation rate of wage workers, ii) an increase in the income tax rate applied to the self-employed, iii) an increase in minimum wages, iv) an expansion of unemployment insurance benefits. Using a search and matching model with the self-employed, I quantify the effects of these four factors on the decrease in the number of self-employed during 2002-2018. Quantitative results show that the impact of the increase in the minimum wage is relatively large, whereas the effects of the other three factors are limited. The increase in the minimum wage accounts for approximately 17.5% (0.169 million) of the decrease in the number of self-employed during 2002-2018 (0.964 million).

Study on Welfare improvement of private security guards - Focusing on the wages and welfare system - (민간경비원의 복리(福利)증진(增進) 방안 연구 -임금 및 복리후생제도를 중심으로-)

  • Kim, Kye-Won;Lee, Keun-Eil
    • Convergence Security Journal
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    • v.16 no.6_2
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    • pp.3-22
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    • 2016
  • The purpose of this paper is to study ways to improve the welfare of private security guards. For this reason, it was analyzed the actual situation of the private security guards' wage and welfare system. As a result of the analysis, the most important factors that affect the wages and welfare system of private security guards was such as contracting costs, the minimum wage level, professional duties. In particular, a private security guards have been recognized as the most low-level professionalism sorted by the simple laborers standard classification. Wages of guards in accordance with this recognition is only about 47% of major company on average, about 80% of the small business average. If the proposed future improvements include: First, we need to improve the professionalism of a private security. Second, It is established a mutual-aid project about private security guards. Third, It shall regulate the wage of private security guards on Private Security Industry Act. Fourth, we should adopt a selective welfare system.

What Causes Children to Work in Indonesia?

  • SANDRA, Heri;MAJID, M. Shabri Abd.;DAWOOD, Taufiq C.;HAMID, Abdul
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.11
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    • pp.585-593
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    • 2020
  • This study contributes to the existing literature by empirically exploring the causes of child labor in the Indonesian labor market. Factors identified include rate of poverty, average wages, education participation, and quality of education. This study utilized an aggregate data of 301 districts and cities across 34 provinces sourced from the National Labor Force Survey and the National School/Madrasah Accreditation Board of the Republic of Indonesia. Using a multiple regression analysis, the study found strong evidence of the positive effect of poverty on child labor. Conversely, the study documented the adverse impact of average wages on child labor in Indonesia. Similarly, the participation in the education system also contributed negatively to the child labor. Finally, the quality of education services is found to have a negative effect on child labor in Indonesia. The findings of this study suggest that, in efforts to reduce the involvement of children in the workforce, the poverty eradication program should be enhanced. The wages should be continuously improved, at least, in par with the changes in prices. Finally, the quality of education and its services ought to be further enhanced to attract more child student participation rates across junior high schools nationwide.