Improving compliance with minimum wage standards - World Bank Blogs
Non-compliance with minimum wage standards has immediate negative social consequences not only for workers and their families, but also for compliant employers, because it gives non-compliant enterprises an illegitimate cost advantage. Enhancing compliance can thus be seen as motivated by reasons that range from upholding the rule of law and ...
Demystifying the Impact of Minimum Wages - World Bank Blogs
David Neumark is Professor of Economics at University of California, Irvine. John T. Addison is Professor of Economic Theory at University of South Carolina.. In recent years, the minimum wage has become an increasingly popular policy instrument to reduce inequality in many emerging markets (like China, Hong Kong, and Cambodia), with others (like Singapore) weighing whether to adopt one.
The Unintended Consequences of Increases in the Minimum Wage
The underlying problem is that in the case of low-skilled (or unskilled) workers, higher minimum wage levels likely exceed their level of productivity. Thus, increases in the minimum wage mean that small companies, which are those that employ these workers most often and have low capital intensity, have to lay off non-essential workers (or even ...
Preventing distortions in minimum wages - World Bank Blogs
In theory yes. It is difficult although not impossible. The function of the minimum wage as a labor tool is to correct imperfections in labor markets, which can lead to misalignments between wages and productivity levels in the economy. In some countries, the minimum wage is used as a tool to protect workers from lower incomes by establishing ...
Latin America overcomes poverty with better wages - World Bank
The report found that poverty in Latin America and the Caribbean, defined as living on less than US$4 per day, decreased from 25.3 percent in 2012 to 24.3 percent in 2013, while extreme poverty (US$ 2.50 per day) fell from 12.2 percent to 11.5 percent. ... South American countries that export commodities recorded real wage increases across all ...
Devising Minimum Wages in Emerging Markets - World Bank Blogs
Given the confusion about the pros and cons of minimum wages in advanced economies, let alone in emerging markets (see previous blog), what types of information should policy makers be armed with?In this blog, we speak with two experts on the topic – John T. Addison (Professor of Economic Theory, University of South Carolina) and David Neumark (Professor of Economics, University of ...
World Bank: Latin America’s Slowdown Puts Pressure on Jobs and ...
The slowdown’s adverse effect on jobs, wages, and income distribution are beginning to show, especially in South America; LIMA, Peru, Oct. 6, 2015 – Four years of an economic downturn are beginning to have adverse effects on jobs and household incomes in Latin America and the Caribbean. After a commodity boom brought significant gains, a ...
How China is faring with minimum wages - World Bank Blogs
For China, the minimum wage represents a useful tool to reduce wage and income inequality, and in recent years, the minimum wage has risen rapidly in many provinces (notably Gansu and Sichuan) (see chart). We recently asked Shi Li (Professor of Economics, School of Economics and Business, Beijing Normal University) about the economic impact of ...
Global Growth to Slow through 2023, Adding to Risk of ‘Hard Landing’ in ...
Global growth is expected to decelerate markedly from 5.5 percent in 2021 to 4.1 percent in 2022 and 3.2 percent in 2023 as pent-up demand dissipates and as fiscal and monetary support is unwound across the world. The rapid spread of the Omicron variant indicates that the pandemic will likely continue to disrupt economic activity in the near term.
Inequality in Latin America falls, but challenges to achieve shared ...
Consequently, with global tides changing and favorable economic winds subsiding, Latin America faces a daunting challenge. Even if current levels of growth were maintained, the report warns it would take 41 years for the region to close the gap in wage inequality with global top performers, missing the 2030 target by 24 years.