Minimum wage and employment: a gender perspective for Mauritius

Varuna Dreepaul-Dabee and Verena Tandrayen-Ragoobur
Authors registered in the RePEc Author Service: Verena Tandrayen Ragoobur

Journal of Business and Socio-economic Development, 2022, vol. 3, issue 1, 1-16

Abstract: Purpose - This paper aims to examine the employment effect of the minimum wage in Mauritius, a country that has recently introduced an economy-wide national minimum wage. As women have low labor force participation rate and higher unemployment rate compared to men, this study sheds light on the impact of the national minimum wage on male and female employment. Design/methodology/approach - A conceptual framework based on the labor–leisure model of Blundellet al.(2007) incorporating the minimum wage as an important variable influencing the employment decision of the individual serves as the methodological backdrop of this paper. It applies the difference-in-difference estimation technique and uses micro data from the Continuous Multi-Purpose Household Survey for the period 2017–2019. Findings - The results show that minimum wage has a significant negative impact on overall employment. With the imposition of the national minimum wage, the probability that an individual, currently earning less than the minimum wage, remains employed is 0.525 lower than that of a worker earning above the minimum wage level. Moreover, using sex-disaggregated data, the analysis demonstrates the negative employment effects of the minimum wage adversely impact women more than men. Originality/value - This is a first attempt to estimate the effect of the newly introduced national minimum wage on employment in Mauritius. While the effects of a minimum wage vary across different segments of the economy, this study adopts a gender perspective by comparing the impact of the minimum wage on male and female employment.

Keywords: Minimum wage; Employment; Gender; J16; E24 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jbsedp:jbsed-10-2021-0134

DOI: 10.1108/JBSED-10-2021-0134

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