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Minimum wages and poverty in a developing country: Simulations from Indonesia's household survey

Manning, Chris; Bird, Kelly


This study focuses on minimum wages, income distribution, and poverty, taking Indonesia as a case study. A simulation approach assesses who benefits and who pays for minimum wage increases. Among the poor, a minimum wages increase boosts net incomes for 21% of the households, while it results in net losses to 79% of the households. The impact is slightly less severe when there are job losses. Although minimum wage increases are mildly progressive (the non-poor pay a higher share of the costs),...[Show more]

CollectionsANU Research Publications
Date published: 2008
Type: Journal article
Source: World Development
DOI: 10.1016/j.worlddev.2007.05.012


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