Minimum Wages and Labor Supply in an Emerging Market : The Case of Mauritius

Asmal, Zaakhir ; Bhorat, Haroon ; Kanbur, Ravi ; Ranzani, Marco ; Paci, Pierella

World Bank, Washington, DC

关键词: MINIMUM WAGE;    POVERTY;    EQUITY;    LABOR SUPPLY;    EMERGING MARKET ECONOMIES;   

DOI  :  10.1596/1813-9450-8681
RP-ID  :  WPS8681

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper investigates the effect ofmultiple minimum wages, known as remuneration orders, onemployment and working hours in Mauritius. Using databetween 2004 and 2014, the analysis indicates that a 10percent increase in the minimum wages brings about aslightly positive effect on employment in the coveredsector, with an estimated employment elasticity of 0.113,which is within the range of elasticities found in previousstudies of employment effects of minimum wages in low- andmiddle-income countries. The positive employment effect ofminimum wages is also associated with a 2.3 percent increasein average working hours for men but a 1.8 percent declinein average working hours for women in the covered sector. Inthe uncovered sector, the significant positive effect alongthe intensive margin, estimated at 4.2 percent, is driven bychanges in labor supply among men.