Minimum Wages and Labor Supply in an Emerging Market: The Case of Mauritius

Haroon Bhorat, Zaakhir Asmal, Ravi Kanbur, Marco Ranzani and Pierella Paci

Working Papers from University of Cape Town, Development Policy Research Unit

Abstract: This paper investigates the effect of multiple minimum wages, known as Remuneration Orders, on employment and working hours in Mauritius. Using data between 2004 and 2014, the analysis indicates that a 10 percent increase in the minimum wages brings about a slightly positive effect on employment in the covered sector, with an estimated employment elasticity of 0.113, which is within the range of elasticities found in previous studies of employment effects of minimum wages in low and middle income (LMI) countries. The positive employment effect of minimum wages is also associated with a 2.3 percent increase in average working hours for men, but a 1.8 percent decline in average working hours for women in the covered sector. In the uncovered sector, the significant positive effect along the intensive margin, estimated at 4.2 percent, is driven by changes in labor supply among men.

Keywords: Minimum Wages; Employment; Hours of Work; Mauritius (search for similar items in EconPapers)
JEL-codes: J23 J31 J38 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2019-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Working Paper Series by the Development Policy Research Unit, January 2019, pages 1-34

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Related works:
Journal Article: Minimum Wages and Labour Supply in an Emerging Market: The Case of Mauritius (2024)
Working Paper: Minimum Wages and Labor Supply in an Emerging Market: The Case of Mauritius (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ctw:wpaper:201901

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