Minimum Wages for Domestic Workers: Impact Evaluation of the Indian Experience
Rohan Gudibande () and
No 294, GLO Discussion Paper Series from Global Labor Organization (GLO)
The paper explores the labor market effect of minimum wage legislations in the informal sector for a developing country. The paper conducts an impact evaluation of the minimum wage legislation for domestic workers introduced in four states in India over the period of 2004-2012. Combining matching procedures with difference-in-difference, the paper estimates both the short-run and the long-run impact of the legislation on real wages and employment opportunities. Results show a positive impact of the legislation on real wages in the short-run, with no significant impact in the long-run. Further, the legislation did not seem to have had any impact on the extensive margin in terms of employment opportunities or the probability of being employed as a domestic worker over the entire period. Available evidence, in line with theoretical predictions, point towards a weak enforcement of the legislation as the driving factor of observed results.
Keywords: wages; minimum wages; domestic workers; unemployment; informal sector (search for similar items in EconPapers)
JEL-codes: J16 J31 J33 J38 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-iue and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:294
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