Economics at your fingertips  

Measuring the impact of minimum wage policies on the economy

Luis Riveros and Ricardo Paredes ()

No 101, Policy Research Working Paper Series from The World Bank

Abstract: This paper undertakes a statistical analysis of the effect of minimum wages (MWs) on different population groups. The underlying question for this analysis relates to the probability bias exerted by certain protective government regulations in terms of the unemployment prospects of specific groups. Several cross-sectional data and a standard human capital model corrected for selectivity bias are used to analyze the case of Chile, where high structural unemployment has been a remarkable feature of the 1970s and 1980s. The main conclusions show that the coverage of the MW is more significant for the young and the less educated, and there exists a negative relationship between human capital stock and actual coverage of MWs. It is also shown that previous statistical analysis of this issue, both in the case of Chile and in industrial countries may have underestimated the negative impact of MWs because they do not correct for selectivity bias.

Keywords: Environmental Economics&Policies; Economic Theory&Research; Labor Markets; Banks&Banking Reform; Poverty Assessment (search for similar items in EconPapers)
Date: 1988-10-31
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) ... d/PDF/multi_page.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().

Page updated 2019-04-18
Handle: RePEc:wbk:wbrwps:101