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We investigate how firing notification procedures influence wage growth. Using a sample of 33 countries over the period 2006–2015, we show that administrative requirements in cases of dismissal have a positive and significant effect on wage growth. The result is robust even after controlling for the endogeneity of the firing notification restrictions, the involvement of third parties in the wage bargaining process, the minimum wage, the firms' training policy, and the composition of employment. These findings suggest that firing notification procedures foster the growth of wages by increasing the bargaining power of incumbent workers. [ABSTRACT FROM AUTHOR]

Purpose: While the effect of the minimum wage (MW) on employment has been widely studied, less is known about its impact on hirings and separations. Whereas the adverse effects of MW on hiring are quite familiar, results of studies indicating reductions in separations are less expected. This study aims to bridge the gap between theory and practice by performing a meta-analysis, which allows for understanding the real effect of MW on employment's two components: hirings and separations. Design/methodology/approach: Since mixed results cloud understanding of the issue, a meta-regression analysis was conducted. This technique permits understanding the effect of MW on labor market transitions and offers additional explanations for controversial results. Findings: Despite the evidence that MW increasing the turnover and reducing permanence could negatively affect employment, findings from meta-regression analysis pointed out that increases in MW reduce hirings but also separations offsetting the negative effect on employment. Overall, the results imply that the standard finding that MW changes have little or no impact on employment rates reflects offsetting reductions in hiring and separations. Evidence of negative publication bias is also found. Research limitations/implications: The results emphasize the importance of looking beyond employment rates to understand the impacts of MW. Overall, the evidence implies that the standard finding that MW changes have little or no impact on employment rates reflects offsetting reductions in hiring and layoffs. In addition, the results suggest that MW tends to have a much larger impact on employment flows than on employment levels. This finding has to be considered by policymakers when they make decisions about increasing the MW. These analyses assist in clarifying debates about the effects of MW on the labor market in the changing economic environment and conduct a labor policy in the right direction. Practical implications: The meta-regression analysis (MRA) conducted in this study emphasizes the importance of looking beyond employment rates to understand the impacts of MW (Brochu and Green, 2013). Overall, the evidence implies that the standard finding that MW changes have little or no impact on employment rates reflects offsetting reductions in hiring and layoffs. Therefore, the evidence from the performed MRA is consistent with those previous meta-analysis studies that found little or no evidence about MW adversely affecting employment and, at the same time, provide additional explanation for these findings. In addition, the results suggest that MW tends to have a much larger impact on employment flows than on employment levels (Dube et al., 2016). Social implications: Even though hirings are reduced due to MW, this evidence could not necessarily imply a negative effect of MW on the labor market since job searching or matching is improved. Additionally, the increases in MW could improve the quality of the job and the job attachment, which are consistent with a recruitment-retention model (Dube et al., 2007). The evidence from this MRA, which is consistent with little or no impact of MW on employment, also could imply that although the MW is set relatively high to balance the supply and demand of labor, their level is close to optimal. Setting the right level is also associated with compliance with MW. This issue deserves attention since any adverse employment effects of MW could be strengthened by incomplete coverage. The effectiveness of the entire process of developing, putting into practice and enforcing MW rules hinges on compliance. Originality/value: As prior meta-regression analysis did not have the same objective, the results of this article move current research forward. Based on the analysis, future research lines are delineated, and some public policy implications are assessed. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this study is to examine whether participating informality is attributed to income shocks such as wage arrears, unexpected wage cuts or compulsory unpaid leaves. The current research uses Russia longitudinal Monitoring Survey 2002–2015. Design/methodology/approach: Using formal jobs as the base category, the authors conducted pooled multinomial logit regressions allowing for the two additional employment statuses: workers without contracts and unincorporated business workers. Findings: The overall results mainly suggest that no effects occur. In other words, unexpected negative income shocks are not the main driving force of informality. Although the majority of previous studies are based on survey questions on unexpected income shock which has sample selection bias, to obtain robustness, the current study used Russian minimum wage reforms as income shocks. This research shows that Russian minimum wage reform does not affect the decision of informality in the labor market. Research limitations/implications: Given the data limitations, the authors only observed and examined the supply-side of the labor market. Tax-evading motives would be the main reason for informality; to ensure this conjecture, however, demand and supply sides need to be simultaneously examined which is beyond the scope of this study. Originality/value: In contrast to a large number of studies on cross-sectional differences in determinants of informal job holding, emphasis on the effects of income shocks on informal employment across business cycles has been minimal. The current study focuses on the business cycles because trends of informal employment can be interpreted differently regardless of whether in an economic boom or recession. Russia, as a unique natural experiment, provides us to examine informal job holdings over the business cycle. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to explore, in the context of Machinery and Equipment sector of Malaysia, the association between average wages and share of employment in automatable jobs, specifically whether the association between average wages and share of employment automatable jobs is asymmetric in nature. Design/methodology/approach: The responses obtained from the structured interview of 265 firms are used to build up the empirical models (conditional mean regression and quantile regression). Findings: The conditional mean regression findings show that employment levels in some low-waged, middle-skilled jobs are negatively associated with average wages. Furthermore, the quantile regression results add that firms that possess higher levels of share of employment in automation jobs are found to have a stronger association to average wages than those possessing a lower share of employment in automation jobs. Practical implications: From the theoretical perspective, the findings of this study add to the body of knowledge of the theory of minimum wages and the concept of job polarization. From a policy perspective, the findings of this study can serve as a critical input to standard setters and regulators in devising industrial and as education policies. Originality/value: Based on the assumption of a constant average policy effect on automatable jobs, conditional mean regression models have been commonly used in prior studies. This study makes the first attempt to employ the quantile regression method to provide a deeper understanding of the relationship between wages and employment in automatable jobs. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to estimate the causal effect of minimum wages (MWs) on the wages, employment and hours of migrant workers in China, and to show their inter-relatedness and how employers can offset some of the costs through subtle adjustments. This paper also illustrates the importance of disaggregating by region and sex. Design/methodology/approach: Causal estimates are provided through difference-in-differences (DID) analysis, and robustness checks through propensity score matching. The analysis is based on micro data at the individual level from the household survey on migrant workers by the National Population and Family Planning Commission, combined with macro data regarding municipalities' population, GDP and employment information based on the China Economic Information Network database. Findings: MW increases for those paid by the month increased the earnings of both low-wage males and females. However, males tend not to experience an adverse employment effect because part of the cost increase is offset by employers increasing their monthly hours of work. Hours of work do not increase for females, so they experience an adverse employment effect. This highlights the importance of examining cost offsets such as increases in hours of work, as well as analyzing effects separately for males and females. Research limitations/implications: The reason behind why employers offset some of the cost increase for males paid by the month by increasing their hours of work, but this cost-offsetting adjustment does not occur for females is uncertain. Social implications: For workers paid by the month, employers can offset some of the cost increase by increasing their hours of work, leading to no reductions in employment. But this adjustment occurs only for males. Hours are not increased for females, but they experience reductions in employment. Clearly, MW increases have adverse effects either in the form of employment reductions (for females) or increases in hours of work for the same monthly pay (for males). Originality/value: This paper provides causal estimates through DID analysis and robustness checks through Propensity Score Matching, and also indicates how employers can offset the cost of MW increases by increasing hours for those paid by the month, resulting in no adverse employment effect for such workers, but an adverse employment effect when such an adjustment does not occur. [ABSTRACT FROM AUTHOR]

Purpose The purpose of this paper is to estimate the causal effect of minimum wages on the employment of low-skilled workers in less developed regions of China.Design/methodology/approach Based on data from the China Health and Nutrition Survey, a double-difference (DD) methodology is used to compare the employment of low-skilled individuals before and after a minimum wage increase in their provinces with a comparison group of individuals in provinces that did not have a minimum wage increase. Also, a triple-difference methodology (DDD) is used that also includes an additional control group of highly educated workers as a within-province internal comparison group that should not be affected by a minimum wage increase.Findings No evidence of an adverse employment effect is found in any of the 36 different estimates, consistent with recent US evidence that uses a similar DD methodology.Research limitations/implications The data are not national representative; rather heavily weighted towards the less developed Central, Western and parts of the Eastern Regions of China. This may partially explain the absence of the theoretically expected adverse employment effect. Other related reasons are discussed, including: lack of enforcement in those less developed regions; a large presence of state-owned enterprises in the regions where employment security clause remains intact; the relatively less developed labour markets in the regions including where employers may behave in a monopsony fashion in their labour markets; shock effects; and cost offsets from reduced fringe benefits and increases in the pace of work. This paper was unable to disentangle the separate effect of these possible factors.Originality/value This is one of the few studies on minimum wages in China to focus on low-skilled workers in less developed regions, to use individuals as the unit of observation rather than aggregates, and to provide causal estimates based on DD and DDD methodologies. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to examine the effects of minimum wage on youth employment across employment statuses in Indonesia. This study uses the National Labour Force Survey (Sakernas) from 2010 to 2012. Design/methodology/approach – This study uses a multinomial logit model to see the youth distribution across different employment status changes as a result of an increase in the minimum wage. Five categories of youth employment statuses are examined including self-employed; unpaid family workers; paid employees in the covered sector; paid employees in the uncovered sectors; and unemployed. The model is examined separately for urban and rural areas, as well as for the male and female youth labour market. Findings – The results generally suggest that an increase in minimum wage decrease the probability of youth being employed in the covered sector, i.e. paid employment in the covered sector and increase the probability of youth being employed in the uncovered sectors, including self-employed, unpaid family workers, and paid employment in the uncovered sectors. This study indicates a displacement effect for youths from the covered sector into the uncovered sector as suggested by the two-sector model. The specific results are different across urban and rural labour markets, as well as across males and females. Originality/value – Compared to the developed country studies, the studies on the effects of minimum wage on youth employment in developing countries is relatively limited. The sample from Indonesian labour market with a large informal sector has never been used for these purposes. This study also contributes to the literature by using the particular definition of the covered-uncovered sector to the Indonesian labour market based on the employment status and individual wage data. [ABSTRACT FROM AUTHOR]

Purpose This study aims to test one hypothesis regarding the impact of the minimum wage on poverty: an increase or the introduction of the minimum wage raises the cost of hiring relatively unskilled workers, and makes inputs that are good substitutes for such workers more attractive.Design/methodology/approach Placebo analyses confirmed that a labor–labor substitution is induced by the introduction of the minimum wage.Findings This study found a labor–labor substitution within low-skill groups induced by the introduction of the minimum wage for domestic and farming work in South Africa.Practical implications The evidence implies that the minimum-wage policy may not be as effective for poverty reduction as some governments in emerging and developing countries claim.Originality/value No studies were found on labor–labor substitution in the context of emerging or developing countries. The clear contribution of this paper using South African data clearly lies here. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to examine the effect of a change in minimum wage on hours worked of paid employment in Indonesia. This study used the Indonesian Labor Force Survey (Sakernas) data from 1996 to 2003. Design/methodology/approach – This study employs Bourguignon-Fournier-Gurgand two-step procedure of sample selection corrections based on a multinomial logit model for a potential selection bias from a non-random sample. This study extends the specification by examining the effects of minimum wage on hours worked of paid employment separately across individuals in different groups of gender (male-female workers) and residences (urban-rural areas). Findings – This study generally found that an increase in the minimum wage increases hours worked of the existing paid employees. The effects of the minimum wage on hours worked are stronger for female workers than male workers particularly in urban areas due to that female workers, particularly in urban areas, are mostly employed in industries which contain more low-wage workers. Comparing residences, the minimum wage coefficient in rural areas is slightly higher because of the structural transformation in Indonesia marked by a shift in employment from the agriculture sector to the other sectors that require more working hours. Originality/value – The empirical studies of the effect of minimum wage on hours worked in developing countries are very limited. This study contributes to the literature by employing the sample selection corrections based on a multinomial logit for a potential selection bias from a non-random sample This study also extends the hours worked specification by analyzing the effects of minimum wage on hours worked separately across individuals in different groups of workers, in terms of gender (male-female workers) and their residences (urban-rural areas). [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to estimate the impact of minimum wages on employment and wages in China. Design/methodology/approach – The paper uses the difference-in-difference methodology to estimate the employment and wage impacts of the minimum wage increase in 2003 – a year when substantial minimum wage increases occurred in some provinces (treatment provinces) but not in others (comparison provinces). The analysis is restricted to the eastern region so as to make comparisons across relatively homogeneous and contiguous provinces with large numbers of women and rural migrant workers in urban areas – the target groups for minimum wages. Findings – The study finds that overall, minimum wages in China do have an adverse employment effect but the effect is statistically insignificant and quantitatively inconsequential. The adverse employment effects are generally larger in the more market-driven sectors, in the low-wage sector of retail and wholesale trade and restaurants, and for women; however even these effects are extremely small. Minimum wages also had no impact on aggregate wages. These estimates appear consistent with many of those based on this methodology which tends to find no substantial adverse employment effect from minimum wages. Practical implications – Good news: minimum wages do not seem to have any substantial adverse employment effect in China. Bad news: this could simply reflect the fact that they are not enforced. Originality/value – This is one of the few studies of effect of minimum wages in China in English, and using a difference-in-difference methodology as first employed by Card. [ABSTRACT FROM AUTHOR]

An introduction to the journal is presented in which the editor discusses various reports published within the issue including one by Arnab K. Basu, Nancy H. Chau, and Zahra Siddique on the impacts of tax and minimum wage reforms on the incidence of informality, one by Fabian Slonimczyk on the effect of tax reforms on the incidence of informal employment in Russia, and one by Tommaso Gabrieli, Antonio F. Galvao Jr., and Gabriel V. Montes-Rojas on the effect of tax reductions on microfirms.

Purpose - Tests for the existence of a long-run relationship between real wages and employment, utilising annual data from 1961-1996 for a panel of 12 European Union countries. Design/methodology/approach -Applies modem time series techniques organised around panel unit root and panel cointegration tests to draw sharper conclusions from the short time series that are typically available. Findings - Indicates that a long-run relationship between real wages and employment cannot be established. This being so, little success is expected in bringing down unemployment, the most pressing problem in the European Union, by reducing real wages. Originality/value - Investigates the long-run relationship between real wages and employment by conducting more reliable tests in the context of 12 European countries, namely Belgium, Denmark, Germany, Spain, France, Ireland, Italy, The Netherlands, Portugal, the UK, Norway and Finland over the period 1961-1996. [ABSTRACT FROM AUTHOR]

This paper investigates the relative remuneration of migrants and German nationals in paid employment in pre-unification Germany. Using microdata it shows that migrants typically earn higher wages than comparable German nationals. The paper also shows the distinction between genders and skill levels to be crucial in the determination of wage gaps. Wage gaps are decomposed in the standard Oaxaca -Blinder way and their development is examined using counterfactual analysis. The paper also shows that conventionally defined wage discrimination works in favour of migrants. Counterfactuals show that, largely, the remunerative advantage of migrants survived the 1981-1983 recession. However, when employment developments are considered, a much bleaker picture arises. The 1981-1983 recession destroyed jobs that have been traditionally occupied by migrants (manual and skilled jobs). Post-recession restructuring generated jobs that went almost exclusively to German nationals (salaried jobs). [ABSTRACT FROM AUTHOR]

Studies the relationship between youth wages and employment using labor market data from Australia and the State of Queensland. Governments' use of policies to increase job offers to young workers; Australian government's introduction of a system of training wages; Increase of human capital of young workers.

Discusses the effects of minimum wages on employment. Variables affecting the minimum wages in employment; Association of low dispersion of wages to high optimal minimum wages; Relationship between employment and toughness.

Discusses the role of the minimum in wage setting among countries. Four attributes of minimum wages; Ratio of the minimum to average wage; Impact of wages to the shape of wage distribution; Employment effects of the minimum; Distribution effects of the minimum.

Estimates the effect of a minimum wage on the level of employment and wages in the Israeli industry. Direct cost effect of minimum wage; Employment effects of minimum wage; Negative effect of minimum wage on both labor demand and supply; Minimum wage serving as a lever to productivity improvement in the manufacturing sector.

The radical revision of the wages council system in the mid-1980s in the claimed interests of increasing labour market flexibility was a controversial measure. Against this background, a study of minimum wages and conditions and other related matters was undertaken in the hotel industry in 1989 in the North West region and among the major national companies. Findings from this study about remuneration and employment practice in regard to young workers and adults are discussed in the context of labour market developments of the 1980s in the hotel industry. Such developments include trends in employment, minimum pay and earnings. Some future issues in relation to minimum wage-fixing are also mentioned. [ABSTRACT FROM AUTHOR]