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    Minimum wage compliance and household welfare: An analysis of over 1500 minimum wages in India


    Mansoor, Kashif and O'Neill, Donal (2021) Minimum wage compliance and household welfare: An analysis of over 1500 minimum wages in India. World Development, 147. p. 105653. ISSN 0305-750X

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    Abstract

    In many developing countries there is a substantial difference between de jure and de facto regulation of minimum wages. We examine the consequences of this by looking at the heterogenous effects of minimum wages across compliance regimes in India. We show that minimum wages have a positive effect on wages, without a corresponding effect on employment. As a result, household consumption increases following increases in the minimum wage. However, the beneficial pass-through to wages and consumption is significantly reduced in low compliance regimes. Labour market reforms can improve workers’ living standards but only if accompanied by effective compliance.

    Item Type: Article
    Additional Information: Cite as: Mansoor, K. & O'Neill, D. 2021, "Minimum wage compliance and household welfare: An analysis of over 1500 minimum wages in India", World development, vol. 147, pp. 105653.
    Keywords: Minimum wage; Compliance; Labour Market Regulation;
    Academic Unit: Faculty of Social Sciences > Economics, Finance and Accounting
    Item ID: 17507
    Identification Number: https://doi.org/10.1016/j.worlddev.2021.105653
    Depositing User: Donal O'Neill
    Date Deposited: 07 Sep 2023 10:30
    Journal or Publication Title: World Development
    Publisher: Elsevier
    Refereed: Yes
    URI:
    Use Licence: This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here

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