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Household Welfare Impact of Minimum Wage Results for a DID analysis: Faster rise in MW results in: MW-Employment Elasticitiesfrom enterprise & LFS data Minimum Wage Elasticitiesof Labor Market Participation (Employment Probability) MW-Employment Elasticitiesfrom enterprise & LFS data Minimum Wage Elasticitiesof Labor Employment by Type of Enterprise and Worker Refers to industries which have real value of assets worth P1.125 billion and above per year. Mean Comparisons of Small and Large Firms, 1980-2008 Notes: Figures in parentheses are standard deviations. Employment of individual workers from disadvantaged population groups (LFS) ĬONCEPTUAL FRAMEWORK Impact Analysis of MW on firms and workers Decreased Consumer Welfare Decreased Worker Welfare 1Pertains to overall employment as well as employment of various demographic subgroupsĬOMPARISON Large & Small Industries Table 1.Employment of enterprises (Survey of Enterprises).Household income and poverty incidence, using APIS panel data.Clear and preponderant evidence from impact studies on.Generally, not only unhelpful but highly detrimental to the welfare of the common man and the disadvantaged.On balance, what currently is their net impact on welfare of common man and the disadvantaged?Įvidence on its Effectiveness The case of the MW:.Potentially, labor regulations can have positive or negative effects.Confusingregulations and biased jurisprudence.Tripartism, inadequate representation of the poor, disadvantaged, and unorganized labor.Costly, inconvenient and long conflict resolutionprocesses.MORE ON Labor Environment More labor regulations and practices: Inflexibilitiesin hiring and firing workers.MINIMUM WAGES and other mandatory benefits (e.g.increase the bargaining power of labor for decent wages and working conditions.protect labor against abuses of employers.
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Livelihood programs How effective are these interventions?.Investment in human capital (education, nutrition and training).Minimum wages and other labor protection regulations.Usual Interventions ADDRESS JOBS AND POVERTY ISSUE Lack of relationship with growth, probably due to statistical noise and more search unemployment due to income rise.Positive correlation of open unemployment with income and education.The openly unemployed are generally not the poor.Central issue jobless + underproductive workersĮxpanding Jobless And Underproductive WorkersĬAVEAT be careful about the interpretation of open unemployment.real wage + surplus labor persistent poverty.Highlights key findings and recommendations of the study.Find ways to make labor regulations and practices work for the poor, jobless and disadvantaged.Analyze the impact of legal minimum wage (MW) on the welfare of the common tao and the disadvantaged.Vicente Paqueo, AnicetoOrbeta, Leonardo Lanzona and Dean Dulay PIDS Economic Policy Monitor Seminar, April 3, 2014 Excellent research assistance of Sol Cortes and Georgina Gonzales is gratefully acknowledged. Views expressed here are of the authors and not of the institutions they are affiliated with. LABOR POLICY ANALYSIS FOR J OBS Expansion & Development Visiting Senior Research Fellow, Senior Research Fellow, PIDS Professor, Ateneo de Manila University, and Research Consultant, PIDS, respectively.