HELLO EVERYONE

Minimum Wage in Developing Countries: Helping or Hurting

Workers? World Bank Policy Note

Prepared by Katherine Terrell

Before we begin……

What is Minimum Wage?

Two Sectors to Consider….

Covered Uncovered

Monopsony

The Debate

PRO ANTI

The Debate

Theoretical Considerations…

Generally, Effect of MW on Economy depends on:

Perfective Competitive - Covered Sector

Perfective Competitive - Uncovered Sector Case 1 Case 2

Monopsony- Covered Sector

Monopsony - Uncovered Sector Case 1 Case 2

Uncovered Sector & Non-Compliance

Uncovered Sector

Uncovered Sector

Non-Compliance

Empirical Findings

Covered Sector 1% .1-.3%

Why?

Covered Sector

Covered Sector

Uncovered Sector

Uncovered Sector

Unemployment

Implementation Challenges

Assessing Minimum Wage Effects

To Summarize:

In Conclusion:

It should be noted…..

Latin America

Other Labor Market Institutions

Effects in the Uncovered Sector

Thank You