BROOKINGS DISCUSSION PAPERS IN INTERNATIONAL ECONOMICS No. 125 MINIMUM WAGES AND POVERTY IN DEVELOP- ING COUNTRIES: SOME EMPIRICAL EVIDENCE
نویسندگان
چکیده
This paper examines the relationship between minimum wages and poverty in developing countries. We regress changes in poverty indicators for a group of developing countries on minimum wage changes, changes in public spending, human capital investment and other variables associated with changes in poverty. We find that higher minimum wages are associated with lower levels of poverty. This result is replicated across a range of poverty measures and country groupings. Higher minimum wages are also associated with higher unemployment, so the potential reduction in poverty is not costless from an efficiency point of view. Nora Lustig Darryl McLeod The Brookings Institution Dept. Of Economics 1775 Massachusetts Ave., NW Fordham University Washington D.D. 20036 441 East Fordham Rd. Tel. (202) 797-6027 The Bronx, NY 10458 Fax (202) 797-6003 Tel. (718) 817-4064 Fax (914) 332-9698
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