Minimun Wages, globalization, and poverty in Honduras
To be competitive in the global economy, some argue that Latin American countries need to reduce or eliminate labor market regulations such as minimum wage legislation because they constrain job creation and hence increase poverty. On the other hand, minimum wage increases can have a direct positive impact on family income and may therefore help to reduce poverty. We take advantage of a complex minimum wage system in a poor country that has been exposed to the forces of globalization to test whether minimum wages are an effective poverty reduction tool in this environment. We find that minimum wage increases in Honduras reduce extreme poverty, with an elasticity of -0.18, and all poverty, with an elasticity of -0.10 (using the national poverty lines). These results are driven entirely by the effect on workers in large private sector firms, where minimum wage legislation is enforced. Increases in the minimum do not affect the incidence of poverty in sectors where minimum wages are not enforced (small firms) or do not apply (self-employed and public sector).
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KOHA-OAI-ECOSUR:489382020-11-25T15:25:05ZMinimun Wages, globalization, and poverty in Honduras Gindling, T. H. autor/a Terrell, Katherine autor/a textengTo be competitive in the global economy, some argue that Latin American countries need to reduce or eliminate labor market regulations such as minimum wage legislation because they constrain job creation and hence increase poverty. On the other hand, minimum wage increases can have a direct positive impact on family income and may therefore help to reduce poverty. We take advantage of a complex minimum wage system in a poor country that has been exposed to the forces of globalization to test whether minimum wages are an effective poverty reduction tool in this environment. We find that minimum wage increases in Honduras reduce extreme poverty, with an elasticity of -0.18, and all poverty, with an elasticity of -0.10 (using the national poverty lines). These results are driven entirely by the effect on workers in large private sector firms, where minimum wage legislation is enforced. Increases in the minimum do not affect the incidence of poverty in sectors where minimum wages are not enforced (small firms) or do not apply (self-employed and public sector).To be competitive in the global economy, some argue that Latin American countries need to reduce or eliminate labor market regulations such as minimum wage legislation because they constrain job creation and hence increase poverty. On the other hand, minimum wage increases can have a direct positive impact on family income and may therefore help to reduce poverty. We take advantage of a complex minimum wage system in a poor country that has been exposed to the forces of globalization to test whether minimum wages are an effective poverty reduction tool in this environment. We find that minimum wage increases in Honduras reduce extreme poverty, with an elasticity of -0.18, and all poverty, with an elasticity of -0.10 (using the national poverty lines). These results are driven entirely by the effect on workers in large private sector firms, where minimum wage legislation is enforced. Increases in the minimum do not affect the incidence of poverty in sectors where minimum wages are not enforced (small firms) or do not apply (self-employed and public sector).Adobe Acrobat profesional 6.0 o superior e InternetSalario mínimoPobrezaGlobalizaciónArtfrosurDisponible en líneaWord Developmenthttp://ftp.iza.org/dp2497.pdfAcceso en línea sin restricciones |
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Salario mínimo Pobreza Globalización Artfrosur Salario mínimo Pobreza Globalización Artfrosur |
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Salario mínimo Pobreza Globalización Artfrosur Salario mínimo Pobreza Globalización Artfrosur Gindling, T. H. autor/a Terrell, Katherine autor/a Minimun Wages, globalization, and poverty in Honduras |
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To be competitive in the global economy, some argue that Latin American countries need to reduce or eliminate labor market regulations such as minimum wage legislation because they constrain job creation and hence increase poverty. On the other hand, minimum wage increases can have a direct positive impact on family income and may therefore help to reduce poverty. We take advantage of a complex minimum wage system in a poor country that has been exposed to the forces of globalization to test whether minimum wages are an effective poverty reduction tool in this environment. We find that minimum wage increases in Honduras reduce extreme poverty, with an elasticity of -0.18, and all poverty, with an elasticity of -0.10 (using the national poverty lines). These results are driven entirely by the effect on workers in large private sector firms, where minimum wage legislation is enforced. Increases in the minimum do not affect the incidence of poverty in sectors where minimum wages are not enforced (small firms) or do not apply (self-employed and public sector). |
format |
Texto |
topic_facet |
Salario mínimo Pobreza Globalización Artfrosur |
author |
Gindling, T. H. autor/a Terrell, Katherine autor/a |
author_facet |
Gindling, T. H. autor/a Terrell, Katherine autor/a |
author_sort |
Gindling, T. H. autor/a |
title |
Minimun Wages, globalization, and poverty in Honduras |
title_short |
Minimun Wages, globalization, and poverty in Honduras |
title_full |
Minimun Wages, globalization, and poverty in Honduras |
title_fullStr |
Minimun Wages, globalization, and poverty in Honduras |
title_full_unstemmed |
Minimun Wages, globalization, and poverty in Honduras |
title_sort |
minimun wages, globalization, and poverty in honduras |
url |
http://ftp.iza.org/dp2497.pdf |
work_keys_str_mv |
AT gindlingthautora minimunwagesglobalizationandpovertyinhonduras AT terrellkatherineautora minimunwagesglobalizationandpovertyinhonduras |
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1756227072446955521 |