 Low-skilled workers and the effects of minimum wage in a developing country: Evidence based on a density-discontinuity approachSharon Katzkowicz, Gabriela Pedetti, Martina Querejeta and Marcelo Bergolo World Development, 2021, vol. 139, issue C Abstract: We estimated the impact of the minimum wage on wages, unemployment, and formal-informal sector mobility for women in the domestic-work sector in Uruguay. Applying the density-discontinuity design developed by Jales (2017), we used cross-sectional data for the period 2006–2016 from the National Household Survey and found that the minimum wage had significant effects on labor outcomes, with almost 20% of women increasing their wages to reach the minimum. This effect was observed in both the formal and informal sector, though the latter was not covered by the policy. We also showed a decline in employment in the domestic sector as well as a significant effect on formal-informal sector mobility with negative impacts on formal employment. We present suggestive evidence those effects were offset by other labor policies undertaken in the analysis period. Keywords: Minimum wage; Labour market; Gender; Informal sector; Developing countries. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:139:y:2021:i:c:s0305750x2030406x DOI: 10.1016/j.worlddev.2020.105279 Access Statistics for this article World Development is currently edited by O. T. Coomes More articles in World Development from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.