Minimum wages, de facto private standards, and trade diversion in horticulture

Marlies Piek and Dieter von Fintel

No wp-2025-10, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: The effects of minimum wages on workers and firms depend on enforcement and compliance. While most research examines local determinants, this paper explores whether international market enforcement influences minimum wage impacts. In South Africa farmers exporting to the EU must comply with private standards mandating minimum wage adherence. Using difference-in-differences and administrative tax data, we analyse how a large agricultural minimum wage increase affected export stance, employment, and wages under varying private standards.

Keywords: Minimum wage; Trade; Employment; Wages; Administrative data; Tax data; South Africa (search for similar items in EconPapers)
Date: 2025
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