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The Effects of Multiple Minimum Wages Throughout the Labor Market

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dc.creator Terrell, Katherine
dc.creator Gindling, T. H.
dc.date 2004
dc.date.accessioned 2013-10-16T07:10:20Z
dc.date.available 2013-10-16T07:10:20Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/20397
dc.identifier ppn:388188715
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/20397
dc.description This paper investigates the effects of legal minimum wages on wages, employment, hours worked and monthly earnings among workers covered by minimum wage legislation as well as those for whom it does not apply (the uncovered sector) in Costa Rica. This country?s large uncovered sector and complex minimum wage policy, which has for decades set numerous wages throughout the wage distribution, provide a stimulating counterpoint to the U.S. framework for the analysis of the impact of minimum wages. We find that legal minimum wages have a significant positive effect on the wages of workers in the covered sector (with an elasticity of 0.10) but no effect on wages of workers in the uncovered sector. We also find that a 10% increase in minimum wages lowers employment in the covered sector by 1.09% and decreases the average number of hours worked of those who remain in the covered sector by about 0.6%. Finally, we show that despite the wide range of minimum wages, the largest impact on the wages and employment of covered sector workers is in the lower half of the distribution.
dc.language eng
dc.relation IZA Discussion paper series 1159
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject J38
dc.subject J31
dc.subject J23
dc.subject ddc:330
dc.subject minimum wages
dc.subject employment
dc.subject wages
dc.subject Costa Rica
dc.subject Mindestlohn
dc.subject Wirtschaftspolitische Wirkungsanalyse
dc.subject Lohnstruktur
dc.subject Beschäftigungseffekt
dc.subject Einkommensverteilung
dc.subject Schätzung
dc.subject Costa Rica
dc.title The Effects of Multiple Minimum Wages Throughout the Labor Market
dc.type doc-type:workingPaper

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