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.
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 ...
Latin America: Growth slowing but unemployment at historic lows
Averaging 6.5 percent, unemployment in Latin America has fallen to near historic lows, contrasting sharply with rich nation’s rates and its own historic peak of 11 percent a decade ago. Salaries have also risen, narrowing the income inequality gap between high and low- income earners. Fueling this is the region’s average projected growth of ...
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.
The challenges of regulating the labor market in developing countries
There are several developing countries where the minimum wage is set above the average value-added per worker, so employers have a strong incentive to bypass the law. And there are others that have no minimum wage at all. Furthermore, there are two unique considerations when thinking about labor market regulation in developing countries. ...
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.
Breaking with history: Why Colombia needs a more progressive tax system
Formal labor in Colombia is very expensive for two reasons. First, because of the minimum wage which is equivalent to more than 70 percent of the average wage. Second, because of the high non-wage labor cost that the employer pays (amounting to 45 percent of the labor cost). Both are among the highest in the world, according to the OECD.
Access to Education, Skilled Jobs Creation Can Accelerate Poverty ...
In 2015, 55% of the population South Africans were poor, living below the national upper-bound poverty line of ZAR 992 per person/per month. In addition, with a per capita consumption Gini coefficient of 0.63 in 2015, South Africa is one of the most unequal countries in the world. Furthermore, unemployment reached 27.7% in the third quarter of ...
South Africa leading the way toward a low-carbon economy and resilient ...
The $497 million project will support Eskom to decommission, repurpose and create new opportunities for the impacted people of Mpumalanga province, which has 12 of South Africa’s coal fired power plants and the 83% of South Africa’s coal production. I visited Mpumalanga in September and met with the Region’s Premier, Refilwe Tsipane.