Abstract
This study explores the impact of minimum wages on employment in the formal and informal sectors, as well as on unemployment in Indonesia. With the ongoing debate on the employment impact of minimum wages, by using aggregate provincial panel data from 2001 to 2015, we found that in general, a minimum wage increase lowers formal sector employment and informal sector employment. An increase in minimum wages is also estimated to lower unemployment, as labor participation declined. When divided by gender, this study shows that female workers in the 15–24 age groups bear the largest loss due to a minimum wage increase.
| Original language | English |
|---|---|
| Pages (from-to) | 62-78 |
| Number of pages | 17 |
| Journal | Journal of the Asia Pacific Economy |
| Volume | 25 |
| Issue number | 1 |
| DOIs | |
| State | Published - 2 Jan 2020 |
| Externally published | Yes |
Bibliographical note
Publisher Copyright:© 2019, © 2019 Informa UK Limited, trading as Taylor & Francis Group.
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
-
SDG 8 Decent Work and Economic Growth -
SDG 10 Reduced Inequalities -
SDG 17 Partnerships for the Goals
Keywords
- Minimum wages
- employment
- formal sector
- informal sector
- unemployment
ASJC Scopus subject areas
- Geography, Planning and Development
- Development
- Political Science and International Relations
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