Minimum wage violations in Honduras

Andrés Ham

IZA Journal of Labor & Development, 2015, vol. 4, issue 1, 1-19

Abstract: This article studies minimum wage non-compliance in Honduras, a dual labor market with high wage floors that are weakly enforced. However, rather than just counting how many workers earn sub-minimum wages, it also estimates violation indices that measure compliance at the intensive margin. I first explore cross-sectional heterogeneity in violations using household survey data. Then, I quantify compliance adjustments to minimum wage hikes by comparing indices before and after a large unexpected increase. Results show substantial differences in non-compliance across industries, location, and coverage status. Violations worsen with rising minima, but less in in more compliant sectors. JEL classification codes: J38, J42, O54 Copyright Ham. 2015

Keywords: Minimum wages; Compliance; Violations; Dual labor markets; Honduras (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (10)

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DOI: 10.1186/s40175-015-0045-3

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