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This dissertation examines several aspects of labor markets and public policy. Chapter 1 examines the prevalence of unobserved sub-state policy in the US and provides a novel method for estimating consistent effects of these unobserved policies. Chapter 2 estimates the spillover effects of minimum wage policies on self-employed workers. Chapter 3 explores a new method for estimating differences between genders in incentive responsiveness. Chapter 1 provides evidence on the effects of treatment contamination and non-compliance in estimates of the impact of state-level public policy. When treatment may varying within jurisdiction, estimating the effects of policy and failing to control for within-jurisdiction variation will bias estimates away from their true values. Even when the non-compliant population is small estimates may not obtain the true effect. This chapter shows that combining standard intention-to-treat corrections for non-compliance with two-sample instrumental variable methods can obtain consistent estimates of the effect of interest, even when the non-compliant population is unobserved in the data. Chapter 2 studies the effects of minimum wages on unincorporated self-employed workers in the US using the 1988-2020 Current Population Survey. Standard state-level difference-in-differences estimates of employment and earnings elasticities find that increasing the minimum wage tends to decrease self-employment but has little effect on hours worked or earnings in the year following the change. Instrumental variable estimates are consistent with these findings but show large earnings gains for these workers. Using a simple model of labor market search, I show that minimum wage increases are potentially welfare improving and the welfare effects can be identified by changes in self-employment. Over this period empirical estimates of minimum wage effects indicate that these policies were on average welfare improving. Chapter 3 examines gender differences in responsiveness to incentives by modeling players' continuation value in head-to-head competition directly using real-world betting odds and data from the 2011-2019 tennis Grand Slam tournaments. In early round match-ups men tend to exert more effort than women given the same continuation value, but when examining competitors of similar ability across the whole tournament differences in responsiveness disappear. For a 100,000 unit increase in the expected value of winning a match, men tend to increase their probability of winning by 0.9 percent, versus 0.7 percent for women. These results highlight the importance of the value of remaining in the competition verses the contemporaneous round prize in these settings.

All three chapters of this dissertation study different aspects of internal organization, and two of the chapters go a step further to understand how decisions within the firm impact markets outside the firm.The first chapter of this dissertation studies empirically how worker task assignments within firms interact with labor and product markets. Using data from a software company, I observe millions of task assignments within hundreds of hair salons, many of which are competitors. I develop a measure of organization complexity, which is the amount of information required to implement a given task assignment, to provide evidence of firm-specific organization costs, which grant complex salons a comparative advantage in producing high-quality products.Based on these facts, I develop a model where oligopolistic firms with different organization costs choose their internal structure. Complexity is costly, but it allows firms to improve product quality by better matching workers with multidimensional skills to tasks. I characterize the profit-maximizing organization, and use results from the literature on rational inattention and information theory to identify and estimate the model for Manhattan hair salons. Counterfactuals reveal that allowing internal organization to be heterogeneous and endogenous changes the equilibrium effects of policy. A sales tax cut increases specialization and therefore the productivity of all workers, while a minimum wage increase generates new types of wage spillovers.The second chapter of this dissertation studies empirically how voluntary labor supply decisions within an organization impact workplace injury rates using novel data on the payroll and workers' compensation claims of Los Angeles traffic officers. I use the leave taken by coworkers as an instrument to estimate the causal effect of daily labor supply decisions on workplace injury. Self-selection via voluntary labor supply reduces injuries by 48 percent compared to the underlying injury rate. The majority of the effect is driven by private factors, implying decentralized overtime assignment mechanisms like shift auctions can be used to reduce injury rates.The third chapter of this dissertation (joint with Stepan Aleksenko) studies theoretically how the use of recruiters impacts the types of workers hired. The chapter considers a model where a firm delegates search for a worker to a recruiter. Productivity is uncertain prior to hire with recruiter beliefs characterized by an expectation and variance. Delegation occurs using a refund contract which is common in the industry. We analyze how delegation in this setting shapes search behavior and the composition of hires. We demonstrate that delegation is theoretically equivalent to making the search technology less accurate. This generates inefficiency: search effort and social surplus are lower under delegation than in the first-best benchmark. We show this inefficiency is driven by moral hazard with a multitasking flavor. The recruiter wastes search effort finding low variance workers at the expense of high expectation workers. As a result, as workers become more homogeneous with respect to productivity variance, delegation becomes more efficient. Our model provides a microfoundation for variance-based statistical discrimination.

We examine worker effort as a potential margin of adjustment to a minimum wage hike using unique data on piece rate workers who perform a homogenous task and whose individual output is rigorously recorded. By employing a difference-in-differences strategy that exploits the increase in Florida’s minimum wage from $6.79 to $7.21 on January 1, 2009, and worker location on the pre-2009 productivity distribution, we provide evidence consistent with incumbent workers’ positive effort responses.

The Living Wage (LW) is based on the idea that workers (and their dependents) should be able to afford a basic but decent living standard from the wages they earn. The LW is a “relative” concept as it is set by the standards of the community in which the workers live and work (Stabile 2008). It is to be contrasted with the National Minimum Wage (NMW), a “wage floor,” which stipulates the minimum pay per hour to which workers are legally entitled. NMWs are not necessarily living wages, as in many national contexts they are rather cautiously set so as to ensure affordability for businesses and not to “undermine” economic competitiveness. [...]

This thesis contains five self-contained papers on firms’ hiring decisions regarding outsiders and how these decisions interact with insiders. Outsiders are broadly defined as people with a weak labor market position, e.g., unemployed, non-Western migrants or minimum-wage workers. Insiders are those who are securely employed. In paper (1), we investigate what characterizes the firms that hire unemployed non-Western immigrants. The results show that firms active in the service industries are more likely to hire unemployed non-Western immigrants. However, this is a rare event, suggesting this sector is unlikely to ever be able to absorb more than a fraction of this outsider group under current labor market conditions. In paper (2), we analyze whether labor cost reductions induce firms to hire outsiders in the retail industry. In this case, a Swedish youth payroll tax cut is used to determine if a reduction in firms’ labor costs increases their employment of minimum-wage retail workers. The results show that reduced labor costs incentivize firms to increase their employment of workers whose wages are close to negotiated minimum wages. In paper (3), we investigate whether the gains from the abovementioned payroll tax cut have been absorbed in higher wages for insiders rather than increasing employment. The results show that while insiders saw their total earnings increase, the main reason for their earnings increase was that they worked more hours. Finally, we explore whether firms’ hiring decisions regarding outsiders are related to their growth rate in papers (4) and (5). The results in paper (4) show that the fastest growing firms are more likely to hire outsiders. However, this finding does not hold when new firms are examined separately and over time. In contrast, the results in paper (5) indicate that high-growth new firms tend to recruit individuals with higher skills during their first three years of operation, suggesting that a firm’s time dimension and point in its lifecycle are important.

This paper studies the impact of a minimum wage policy in a labor market with a private and a public sector. We develop a two-sector search and matching model with minimum wage and heterogeneous workers in their human capital. We structurally estimate the model using data for Chile, a country with a large fraction of employment in the public sector and a binding minimum wage. Counterfactual analysis shows that institutional features of public sector employment reduce labor market frictions and mitigate the negative effect of the minimum wage on unemployment and welfare.

Purpose The purpose of this paper is to understand labor market regulations and their consequences for the allocation of resources. Design/methodology/approach This paper constructs a theoretical model to study labor market regulations in developing countries and how it affects the allocation of resources between the less productive informal activities and more productive formal activities. It also provides empirical support for some theoretical results using cross-country data. Findings When workers are risk-averse and the market for insurance against labor income risk is missing, regulations that provide insurance to workers (such as severance payments) reduce misallocation. However, regulations that simply create barriers to the dismissal of workers increase misallocation and end up reducing the welfare of workers. This study also provides some empirical evidence broadly consistent with the theoretical results using cross-country data. While dismissal regulations increase the share of informal employment, severance payments to workers do not. Research limitations/implications The empirical exercise is constrained by the lack of availability of good data on the informal sector. Originality/value The analysis of the alternative labor market regulations analyzed in this paper in the presence of risk-averse workers is an original contribution to the literature.

This study adds to a growing body of studies on gender inequality, centred on the role of the minimum wage. The unprecedented increases of the minimum wage in Korea during the 2010s allow us to dir...

Pengangguran merupakan permasalahan aktual dalam ketenagakerjaan di Indonesia. Pada tahun 2019, jumlah pengangguran di Indonesia sebanyak 7,10 juta orang, sebesar 56,02 persen atau 3,98 juta orang diantaranya adalah kelompok usia muda (15-24 tahun). Pengangguran usia muda menunjukkan adanya pemborosan sumber daya yang terbatas yang dapat menghambat potensi pertumbuhan ekonomi. Selain itu, juga berdampak pada lingkungan sosial, seperti kriminalitas, masalah kesehatan, dan kemiskinan. Provinsi Jawa Timur merupakan provinsi dengan jumlah pengangguran usia muda tertinggi kedua di Indonesia sebanyak 478.478 orang, padahal perekonomiannya menunjukkan pertumbuhan yang baik, bahkan lebih baik daripada pertumbuhan ekonomi nasional selama tahun 2015-2019. Penelitian ini bertujuan menganalisis variabel-variabel yang memengaruhi jumlah pengangguran usia muda di Provinsi Jawa Timur tahun 2019. Data yang digunakan adalah data Sakernas Agustus 2019 (backcasting). Metode analisis yang digunakan adalah regresi binomial negatif karena dapat mengatasi masalah overdispersi pada regresi Poisson. Hasil analisis menunjukkan bahwa terdapat pengaruh signifikan dari variabel upah minimum kabupaten/kota, serapan tenaga kerja sektor pertanian dan sektor industri pengolahan, pertumbuhan ekonomi, dan APK SMA terhadap jumlah pengangguran usia muda. Sementara itu, variabel persentase angkatan kerja muda lulusan SMA/sederajat dan investasi berpengaruh tidak signifikan terhadap jumlah pengangguran usia muda.

Die Mindestlohnbetriebe können es in der Corona-Pandemie aus verschiedenen Gründen besonders schwer haben. Wir stellen fest, dass Mindestlohnbetriebe zu Beginn 2021 häufiger von der Corona-Pandemie betroffen waren als die übrige Wirtschaft, was auf die Branchenzusammensetzung der Mindestlohnbetriebe und nicht auf den Mindestlohn selbst zurückzuführen ist. Die Ergebnisse zeigen auch, dass Mindestlohnbetriebe häufiger Kurzarbeit einsetzen als andere Betriebe. Auch das Arbeitsvolumen wird in Mindestlohnbetrieben häufiger als in anderen Betrieben durch den Abbau von Überstunden reduziert. Zudem werden Lohnerhöhungen und Sonderzahlungen häufiger gekürzt oder ausgesetzt. For a number of reasons, businesses affected by minimum wage may have a particularly hard time during the coronavirus pandemic. We have found that minimum wage establishments were more frequently affected by the Corona pandemic than the rest of the economy at the beginning of 2021 due to the industry composition of these establishments rather than to minimum wage itself. The findings also indicate that minimum-wage establishments use short-time work more often and that the volume of work is reduced more frequently than in other establishments by cutting back on overtime. Finally, salary increases and special payments are also reduced or suspended more frequently.

This report describes how living wage estimates were calculated for New Providence and Grand Bahama. This report uses primary and secondary sources and is inspired by the Anker methodology. We calculated that $2625 and $3550 were needed each month as the gross living wage for a full-time worker who must sustain a family of four in New Providence and Grand Bahama, respectively. We estimated the net living wage to be $2500 per month for New Providence and $3400 for Grand Bahama. Our estimates are almost 200% higher than the minimum wage and nearly 130% higher than the poverty line for New Providence; for Grand Bahama, they are almost 300% higher than the minimum wage and 160% higher than the poverty line. The study should inform national discussions on public policy matters related to reducing the country’s cost of living, improving its income equity, and pursuing economic justice for all.

We estimate the effects of the minimum wage on women’s intrahousehold bargaining power in Indonesia. Using regional minimum wages in Indonesia from 2000 to 2014 and a sample of married hous...

Agricultural production outsourcing, a new means of agricultural production, can optimise the allocation of resources, reduce agricultural production costs, and improve agricultural productivity. However, farmers’ outsourcing behaviours are strongly interfered with by many factors such as economics, technology and institutions. Using a farmer-level data set from 2014 to 2018 in China, we examine the effects of the minimum wage increase on rice farmers’ production outsourcing behaviours. Our study relies on a Logit regression framework and uses the control function (C.F.) approach to address potential endogeneity concerns. Results show that the minimum wage increase significantly reduces the probability of farmers conducting production outsourcing. We also examine the heterogeneous effects of the minimum wage increase, and find that compared with other outsourcing services, the adverse effects on harvesting outsourcing are the strongest; the negative effects on production outsourcing are stronger for rice farmers with higher education. Our results provide new insights into understanding how labour regulation affects labour division in agricultural production.

39 p., Minimum wages have been widely discussed in the literature. The minimum wage impact on employment strongly depends on labor market concentration and the point at which it is located in the income distribution. Therefore, its study essentially involves exploring whether it has been set too far, beyond the competitive market wage. In 2019, the Spanish government decided to raise the minimum wage by 22.3%. This increase is of a previously unseen magnitude. Using rich administrative data, we combine Propensity Score Matching and a Difference-in-Differences model to evaluate the short- unemployment effect of this policy. We fi nd that the reform increased the probability of job loss within a range of 0.38pp.(7.8%) and 0.44 pp. (9.2%) for workers below the new minimum wage, which implies an employment elasticity between 0.3 and 0.4. In addition, our results suggest that the bulk of this effect is concentrated in the group of workers furthest from the new minimum wage. This is the segment of the income distribution that bore the bulk of the employment costs of the minimum wage increase.

The US economic expansion which began in 2009 was unusually prolonged but relatively weak. Profitability and investment strengthened between 2010 and 2015 but then began to falter. After Trump took office in 2017 there was a minor recovery in investment but the proceeds of major tax cuts were overwhelmingly used to finance payouts to share owners. Unemployment fell steadily from 2010 but with a shift towards lower-paid jobs. Median wages increased from around 2014, but while those for women had risen steadily since the 1980s, those for men only recuperated to their 1980 level in 2018. By contrast, top incomes soared. The impact of the COVID-19 epidemic was partly cushioned by huge government spending programmes, but unemployment among less-skilled workers increased strongly, while the massive monetary response led to an unprecedented bonanza for the rich. The Biden government's first major initiative extended unemployment benefits and promoted a national response to the health emergency, but failed to secure an increase in the national minimum wage to $15 an hour.

This contribution scrutinises how introducing a statutory minimum wage of EUR 8.50 per hour, in January 2015, impacted German employees’ decision with regard to union membership. Based on representative data from the Labour Market and Social Security panel, the study applies a logistic difference-in-differences propensity score matching approach on entries into and withdrawals from unions in the German Trade Union Confederation (Deutscher Gewerkschaftsbund, DGB). The results show no separate effect on withdrawals from or entries into unions after the minimum wage introduction for those employees who benefited financially from it, but a significant increase of entries overall. Thus, unions’ campaign for a minimum wage strengthened their position in total but did not reverse the segmentation of union membership patterns.

I propose and estimate a structural model of the labor market that features agents who are heterogeneous in both productivity and reservation wages, and a monopsony employer bound by the minimum wage. I examine the consequences of alternative minimum wage regimes. My results indicate that under a $15 federal minimum wage, at least 1.58 million lower-skilled women aged between 24 and 55 who worked for less than $15 per hour in 2017 would lose their jobs and be involuntarily excluded from labor market participation. The remaining 11.21 million would see their wage rise to the new minimum. The $15 minimum would also encourage an additional 2.74 million women to enter the labor force.

This study examines the effect of minimum wage hikes on the shares of uninsured people during the period 2008-2018. Despite some concern that higher minimum wages would lead to higher uninsured rates by (1) reducing employment, (2) inducing employers to stop offering health insurance to their employees, and (3) making minimum wage workers ineligible for Medicaid by increasing their earnings, the findings indicate that the uninsured rate tends to decrease with higher minimum wages, suggesting that minimum wage hikes might encourage minimum-wage workers to obtain health insurance. The effects appear to come from minimum wage hikes that occurred after the Affordable Care Act (ACA) took effect in 2014, suggesting that higher minimum wages combined with federal subsidies for the ACA marketplace and the individual mandate might have contributed to a reduction in the uninsured rate. However, Medicaid expansions seem to mitigate the effect of the minimum wage on the uninsured rate among low-income households.

We study a transportation network company (TNC) that offers on-demand solo and pooling e-hail services in an aggregate mobility service market, while competing with transit for passengers. The market equilibrium is established based on a spatial driver–passenger matching model that determines the passenger wait time for both solo and pooling rides. We prove, under mild conditions, this system always has an equilibrium solution. Built on the market equilibrium, three variants of pricing problems are analyzed and compared, namely, (i) profit maximization, (ii) profit maximization subject to regulatory constraints, and (iii) social welfare maximization subject to a revenue-neutral constraint. A comprehensive case study is constructed using TNC data collected in the city of Chicago. We found pooling is desirable when demand is high but supply is scarce. However, its benefit diminishes quickly as the average en-route detour time (i.e., the difference between the average duration of solo and pooling trips) increases. Without regulations, a mixed strategy—providing both solo and pooling rides—not only achieves the highest profit and trip production in most scenarios, but also gains higher social welfare. The minimum wage policy can improve social welfare in the short term. However, in the long run, the TNC could react by limiting the size of the driver pool, and consequently, render the policy counterproductive, even pushing social welfare below the unregulated level. Moreover, by maintaining the supply and demand of ride-hail at an artificially high level, the minimum wage policy tends to exacerbate traffic congestion by depressing the use of collective modes (transit and pooling). A congestion tax policy that penalizes solo rides promotes pooling, but may harm social welfare. However, it promises to increase both social welfare and pooling ratio when jointly implemented with the minimum wage policy.

This paper estimates the pass-through of minimum wage increases into the prices of US grocery and drug stores. We use high-frequency scanner data and leverage a large number of state-level increases in minimum wages between 2001 and 2012. We find that a 10% minimum wage hike translates into a 0.36% increase in the prices of grocery products. This magnitude is consistent with a full pass-through of cost increases into consumer prices. We show that price adjustments occur mostly in the three months following the passage of minimum wage legislation rather than after implementation, suggesting that the pricing of groceries is forward-looking. The rise in prices occurs mostly through an increase in the frequency of price increases. Prices rise to the same extent for goods consumed by low-income and high-income households. Our results suggest that consumers rather than firms bear the cost of minimum wage increases in the retail sector., The Review of Economics and Statistics, 104 (5), ISSN:0034-6535, ISSN:1530-9142

Türkiye’de asgari ücret düzeyinin enflasyon ile ilişkisi; enflasyonun altında kalıp kalmadığı uzun yıllardır tartışma konusudur. Asgari ücret düzeyinin bölgesel olarak belirlenmesi konusu da aynı şekilde gündemde olmuştur. Bunun yanında asgari ücret ile açlık ve yoksulluk arasında da bir ilişki olduğu düşünülmektedir. Bu çalışmanın amacı, asgari ücret ile enflasyon, bölgesel enflasyon, açlık ve yoksulluk sınırı arasındaki ilişkinin tespit edilmesidir. Çalışmada 2005: S1-2022: S1 dönemleri arasında Türkiye’de asgari ücretin farklı versiyonları ile enflasyon, açlık ve yoksulluk sınırı ve bölgesel enflasyon arasındaki ilişki Bootstrap Toda-Yamamoto Nedensellik Testi ile incelenmiştir. Testin sonuçları, brüt asgari ücret ve işveren maliyeti ile ulusal enflasyon oranları ve açlık ve yoksulluk sınırları arasında çift taraflı nedensellik ilişkisini göstermektedir. Net asgari ücret ile asgari ücret artış oranı ise tüketici enflasyonunun nedeni değil iken, diğer değişkenlerle karşılıklı nedensellik ilişkisi içindedir. Bunun yanında sonuçlar, bölgesel olarak da farklılık göstermektedir. Bazı bölgelerde asgari ücretin bölge enflasyonun nedeni olduğu, diğer bölgelerde ise karşılıklı nedensellik ilişkisinin olduğu veya hiç nedensellik ilişkisinin bulunmadığı tespit edilmiştir. Ayrıca bölgesel enflasyon oranları arasında zayıf bir yakınsamanın olduğu, bölgesel enflasyon oranlarının birbirinden farklı şekilde değişim gösterdiği bulunmuştur. Tüm bunlar neticesinde, açlık ve yoksulluk sınırları gözetilerek, bölgesel enflasyonun ve diğer bölgesel özelliklerin dikkate alınarak asgari ücretin bölgesel olarak düzenlenmesi önerilmektedir., The relationship between the minimum wage level and inflation in Turkey, whether it is below inflation or not, has been a matter of debate for many years. The regional determination of minimum wage levels has also come to the agenda. In addition, a relationship is thought to exist for minimum wage with the hunger and poverty thresholds. This study aims to determine the relationship minimum wage has with inflation, regional inflation, the hunger threshold, and the poverty threshold. The study examines the relationships the different versions of minimum wage have with inflation, the hunger threshold, and the poverty threshold alongside regional inflation in Turkey for the S1 2005-S1 2022 period using the bootstrapped Toda-Yamamoto causality test. The test results show bidirectional causality to exist among gross minimum wage, employer cost, and national inflation rates with the hunger and poverty thresholds. While net minimum wage and increased minimum wage rate do not cause consumer inflation, they do have a mutual causality relationship with the other variables. In addition, the results differ regionally. For example, minimum wage is determined to be the cause of regional inflation in industrially developed regions except İstanbul. In contrast, the minimum wage and regional inflations in Northern region of Central and Eastern Anatolia and Eastern Black Sea region, has a mutual causality relationship or no causal relationship at all. In addition, a weak convergence is found to be present for regional inflation rates, with these rates varying differently from one another. As a result, the suggestion can be made that minimum wage should be regulated regionally by considering regional inflation and other regional characteristics, as well as the hunger and poverty thresholds.

Minimum wages have been widely discussed in the literature. The minimum wage impact on employment strongly depends on labor market concentration and the point at which it is located in the income distribution. Therefore, its study essentially involves exploring whether it has been set too far, beyond the competitive market wage. In 2019, the Spanish government decided to raise the minimum wage by 22.3%. This increase is of a previously unseen magnitude. Using rich administrative data, we combine Propensity Score Matching and a Di erence-in-Di erences model to evaluate the short-run employment e ect of this policy. We nd that the reform increased the probability of job loss within a range of 0.38 pp. (7.8%) and 0.44 pp. (9.2%) for workers below the new minimum wage, which implies an employment elasticity between 0.3 and 0.4. In addition, our results suggest that the bulk of this e ect is concentrated in the group of workers furthest from the new minimum wage. This is the segment of the income distribution that bore the bulk of the employment costs of the minimum wage increase., Máster Universitario en Análisis Económico Aplicado (M148)

With its introduction in 2015, the statutory minimum wage in Germany intends to benefit primarily low-wage workers. Thus, this paper aims at estimating the effectiveness of the im- plemented wage floor on gender wage gaps in the lower half of the wage distribution. Using administrative data, distinct regional differences regarding magnitudes of wage differentials and responses to the minimum wage are identified. Overall, wage gaps between men and women at the 10th percentile decrease by 2.46 and 6.34 percentage points respectively in the West and East of Germany after 2015. Applying counterfactual wage distributions, the study provides new evidence that around 60% and even 95% of the decline result from the introduction of the minimum wage in each region. Further, group-specific analyses identify concrete responses on the basis of age, educational level and occupational activity. Having yearly data, the study ad- ditionally reveals new results on the impact of the successive minimum wage raises in 2017 and 2019. Counterfactual aggregate decompositions of gender wage gaps finally indicate a decrease in discriminatory remuneration structures in the West of Germany due to the introduced wage floor.

We investigate the wage, employment, and reallocation effects of the introduction of a nationwide minimum wage in Germany that affected 15% of all employees. Based on identification designs that exploit variation in exposure across individuals and local areas, we find that the minimum wage raised wages but did not lower employment. It also led to the reallocation of low-wage workers from smaller to larger, from lower- to higher-paying, and from less to more productive establishments. This worker upgrading accounts for up to 17% of the wage increase induced by the minimum wage. Moreover, at the regional level, average establishment quality increased in more affected areas in the years following the introduction of the minimum wage.

The effect of minimum wages increases on youth employment level has been extensively analysed, but recent contributions have highlighted the potential bias in these studies due to neglected spatial autocorrelation in the considered relationship. This paper contributes to this scarce literature by providing novel evidence for a country with very low interregional mobility. The aim is to see if the bias of neglecting spatial dependence acts in a similar direction than in the few studies for the United States and if this bias explains the low elasticity of youth employment to minimum wages in Spain compared to the international literature. Our results show the relevance of spatial spillovers in the Spanish regional labour markets, but after correcting for the bias, we do not find a significant negative elasticity of youth employment to minimum wages, with the only exception of those between 16 and 19 years old., [Pendent paginació definitiva]

Gelir dağılımındaki eşitsizlikle mücadelede önemli stratejilerden biri, emek faktörünün gelirini artırmaya yönelik ücret politikalarıdır. Zira ücret, milli gelirde en büyük paya sahip faktör geliridir. Bu bağlamda çalışmada, Türkiye’de ücret politikalarının gelir dağılımı eşitsizliğini nasıl etkilediği irdelenmektedir. ARDL Sınır Testi Yaklaşımı ile analiz edilen ekonometrik modelin bağımlı değişkeni gelir dağılımını temsilen Gini katsayısı, bağımsız değişkenleri ise özel sektör ücretlerini temsilen özel bir havayolu şirketinin ortalama ücretleri ve asgari ücrettir. Çalışmanın bulgularına göre asgari ücretteki %1’lik bir artış Gini katsayısını %0.061 oranında azaltmakta; özel sektör ücretlerindeki %1’lik bir artış ise Gini katsayısını %0.051 oranında artırmaktadır. Bu sonuç asgari ücret politikalarının eşitsizliği azaltmada önemli rol oynadığını; özel sektör ücret artışlarının ise eşitsizliği artırdığını ima etmektedir. Ayrıca nedensellik analizine göre bu ilişki kısa dönemde de geçerlidir., One of the important strategies in combating inequality in income distribution is wage policies aimed at increasing the income of the labor factor. Because wages are the factor income that has the largest share in national income. In this context, the study examines how wage policies affect income inequality in Turkey. The dependent variable of the econometric model analyzed with the ARDL Bounds Test Approach is the Gini coefficient representing the income distribution, and the independent variables are the average wages of a private airline company representing the private sector wages and the minimum wage. According to the findings of the study, a 1% increase in the minimum wage reduces the Gini coefficient by 0.061%; A 1% increase in private sector wages increases the Gini coefficient by 0.051%. This result indicates that minimum wage policies play an important role in reducing inequality; private sector wage increases imply that inequality increases. In addition, according to causality analysis, this relationship is also valid in the short run.

PurposeA “living” wage (LW) is conventionally defined as enabling meaningful participation in society above subsistence through, for example, recreation, supporting a family, and savings. There is increasing debate over LWs due to growing inequality, rising living costs and welfare reform but this remains largely framed by the econometric cost-benefit parameters that apply to minimum wage regulation. The capabilities approach advocated by Sen (1999) offers a different perspective that is inclusive of choice, contingencies and the inter-connections between quality of (paid) work and private life. The paper aims to discuss these issues.Design/methodology/approachThe paper adopts this framework and utilises a qualitative exploration of the narratives of 606 New Zealand employees to understand perceived wage effectiveness. The results suggest that a focus on a specific LW rate might be conceptually limiting, in comparison to a LW range.FindingsFirst, the findings indicate that there is a pivot range in which people move from self-assessed “survival” to “decent” income. Second, a LW may have more than a simply monetary effect in better meeting employees’ living costs; it can also improve well-being through subjective perceptions of valued freedoms to do with job satisfaction, equity and security.Originality/valueThe results thus draw attention to a wider notion of a LW in terms of personal and family well-being, utilising a capabilities approach, with implications for organisational practice, policy and theory concerning sustainable livelihood and the UN Sustainable Development Goals.

The escalation of Covid-19 cases in Indonesia really affected employment sector, as seen from the escalation of unemployment rate, especially in West Java. Based on data from Statistics Indonesia (BPS) of West Java Province in February 2021, the escalation in the open unemployment rate reached 8,75 million people. The impact of Covid-19 has also made business performer experience a decreasing income, making it difficult to pay wages. Unemployment causes psychological effects on individuals and reduces the level of welfare. The purpose of this study was to determine the effect of the minimum wage on the open unemployment rate in West Java. This study is associative research using a quantitative approach. The analytical method used in this study is simple regression analysis using secondary data obtained from Statistics Indonesia (BPS) in 2015-2020 in West Java Province. The results showed that the minimum wage has no effect on the open unemployment rate. It is expected that the wage policy be able to provide a balance between the capability of the company and a decent life

In this paper, we analyze the introduction of a nonbinding minimum wage in a search–matching model with wage bargaining. Applying the Kalai–Smorodinsky bargaining solution instead of the commonly applied Nash solution, we provide a theoretical explanation for spillover effects of minimum wages on other wages higher up in the wage distribution. The labor market equilibrium in the Kalai–Smorodinsky solution with a minimum wage is characterized by lower market tightness, a higher unemployment rate, and lower vacancy rate than the equilibrium in the Nash solution. Moreover, we show that a nonbinding minimum wage can increase social welfare.

Low unionization rates, a falling real federal minimum wage, and outsourcing have hampered wage growth in the low-wage sector in the US. In recent years, a number of private employers have opted to institute or raise company-wide minimum wages for their employees, sometimes in response to public pressure. To what extent do wage-setting changes at major employers spill over to other employers, and what are the broader labor market effects of these policies? In this paper, we study recent minimum wages by Amazon, Walmart, Target, CVS, and Costco using data from millions of online job ads and employee surveys. We document that these policies induced wage increases at low-wage jobs at other employers, where the modal response was to match the wage announced by the large retailer. In the case of Amazon’s $15 minimum wage in October 2018, our estimates imply that a 10% increase in Amazon’s advertised hourly wages led to an average increase of 2.3% among other employers in the same commuting zone. Using the CPS, we estimate wage increases in exposed jobs in line with our magnitudes from employee surveys and find that large employer minimum wage policies led to small but precisely estimated declines in employment, with employment elasticities ranging from -0.04 to -0.13. Large employer minimum wage announcements influenced wages more broadly. The magnitude of these wage spillovers cannot easily be explained by standard competitive pressures, suggesting a role for both market power and norms in wage determination.

Outsourced workers experience large wage declines, yet domestic outsourcing may raise aggregate productivity. To study this equity-efficiency trade-off, we contribute a framework in which firms either hire many imperfectly substitutable worker types in-house by posting wages along a job ladder, or rent labor services from contractors who hire in the same frictional labor markets. Three implications arise. First, more productive firms are more likely to outsource to save on higher wage premia. Second, outsourcing raises output at the firm level. Third, contractors endogenously locate at the bottom of the job ladder, implying that outsourced workers receive lower wages. Using firm-level instruments for outsourcing and revenue productivity, we find empirical support for all three predictions in French administrative data. After structurally estimating the model, we find that the rise in outsourcing in France between 1996 and 2007 raised aggregate output by 3% and reduced the labor share by 0.7 percentage points. A 9% minimum wage increase stabilizes the labor share and maintains two thirds of the output gains.

Andrew Glover and Jose Mustre-del-Rio examine how monetary policy may amplify or dampen the response of employment and inflation to an increase in the minimum wage. Their model-based analysis suggests a minimum wage increase has expansionary effects on the economy if the central bank is relatively unresponsive to current inflation, and contractionary effects if the central bank responds more aggressively (more than one-for-one) to current inflation. More generally, their framework suggests that if an increase in the minimum wage engenders contractionary effects, the central bank can mitigate these effects by allowing inflation to rise by more than the nominal interest rate.

This paper advances the use of pre-analysis plans in non-experimental research settings. In a study of recent minimum wage changes, we demonstrate how analyses of medium- and long-run impacts of policy interventions can be pre-specified as extensions to short-run analyses. Further, our pre-analysis plan includes comparisons of the effects of large vs. small minimum wage increases, which is a theoretically motivated dimension of heterogeneity. We discuss how these use cases harness the strengths of pre-analysis plans while mitigating their weaknesses. This project’s initial analyses explored CPS and ACS data from 2011 through 2015. Alongside these analyses, we pre-committed to analyses incorporating CPS and ACS data extending through 2019. Averaging across the specifications in our pre-analysis plan, we estimate that relatively large minimum wage increases reduced employment rates among low-skilled individuals by just over 2.5 percentage points. Our estimates of the effects of relatively small minimum wage increases vary across data sets and specifications but are, on average, both economically and statistically indistinguishable from zero. We estimate that medium-run effects exceed short-run effects and that the elasticity of employment with respect to the minimum wage is substantially more negative for large minimum wage increases than for small increases.