The Impact of Minimum Wage Legislation in Developing Countries where Coverage Is Incomplete

P. Jones

Working Papers Series from Centre for the Study of African Economies, University of Oxford

Abstract: This paper examines the impact of minimum wage legislation in developing countries where coverage is incomplete. Using a rich data set from Ghana, it estimates the extent to which a binding minimum wage alters employment in both the formal and informal sectors of the labor market. The data reveal that Ghana's minimum wage policies during the 1970s and 1980s led to a reduction of formal sector jobs and an increase in informal sector jobs. In addition, there is some evidence to suggest that a large proportion of the displaced workers from the formal sector ended up working in the informal sector.

Keywords: MINIMUM WAGE; INFORMAL SECTOR (search for similar items in EconPapers)
JEL-codes: J38 O17 (search for similar items in EconPapers)
Date: 1998

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