The Impact of Minimum Wage Hikes on Employment and Wages in Cambodia

Maheshwor Shrestha

No 8839, Policy Research Working Paper Series from The World Bank

Abstract: Using an event-study framework, this paper examines the impact of four minimum wage hikes between 2008 and 2015 on the Cambodian labor market. The analysis finds that, except for immediate adjustments around the time of the hikes, the minimum wage hikes did not affect participation rates in the affected sector -- garments and footwear -- or the unaffected sectors. However, the minimum wage hikes increased wages modestly (3 percent) for workers in the affected sectors and modestly decreased wages (1.5 percent) for workers in the unaffected sectors. The gains for the affected sectors are slightly larger at higher quantiles than at lower quantiles. This is suggestive of a change in compensation structure within the affected firms as a result of the hikes.

Date: 2019-05-02
New Economics Papers: this item is included in nep-sea
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://documents.worldbank.org/curated/en/14727155 ... ages-in-Cambodia.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: https://EconPapers.repec.org/RePEc:wbk:wbrwps:8839

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 ().