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Title: The Impact of minimum wage policy on wages and employment in developing countries : the case of Indonesia 
Author: Suryahadi, Asep
Date: 2001
Publisher: Honolulu: East-West Center
Abstract: Since the late 1980s, minimum wages have become an important plank of the Indonesian government's labour policy. Minimum wages have increased faster than average wages and GDP. As a result, minimum wages have become binding for the majority of workers. This study finds that minimum wages have a positive but statistically insignificant impact on average wages. On the other hand, minimum wages have a negative and statistically significant impact on employment. In particular, the disemployment impact is greatest for women, youth, and less educated workers. However, the employment prospects of white-collar workers are enhanced by increases in minimum wages.
Series/Report No.: East-West Center working papers. Economics series ; no. 38
Description: For more about the East-West Center, see
Pages/Duration: 39 pages
LC Subject Headings: Minimum wage - Indonesia
Wages - Indonesia
Labor market - Indonesia
Employment (Economic theory)

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