Does increasing the minimum wage reduce poverty in developing countries? : whether raising minimum wages reduces - or increases - poverty depends on the characteristics of the labor market

T.H. Gindling (University of Maryland Baltimore County, USA, and IZA, Germany)

Raising the minimum wage in developing countries could increase or decrease poverty, depending on labor market characteristics. Minimum wages target formal sector workers - a minority in most developing countries - many of whom do not live in poor households. Whether raising minimum wages reduces poverty depends not only on whether formal sector workers lose jobs as a result, but also on whether low-wage workers live in poor households, how widely minimum wages are enforced, how minimum wages affect informal workers, and whether social safety nets are in place.

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Year of publication:	November 2018 ; Version 2
Authors:	Gindling, Thomas
Publisher:	Bonn : Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA)
Subject:	minimum wage \| developing countries \| poverty \| Armut \| Poverty \| Mindestlohn \| Minimum wage \| Entwicklungsländer \| Developing countries \| Wirkungsanalyse \| Impact assessment \| Armutsbekämpfung \| Poverty reduction \| Arbeitsmarkt \| Labour market \| Beschäftigungseffekt \| Employment effect