The effect of doubling the minimum wage on employment: evidence from Russia
نویسندگان
چکیده
We take advantage of a natural experiment in the minimum wage setting in Russia to study the employment consequences of large hikes in the minimum wage. In September 2007, the Russian government raised the federal minimum wage from 1100 to 2300 Rubles and simultaneously gave the regions the power to set their own minima above the federal threshold. In studying the effect of this reform, we follow the approach proposed by David Card and compare changes in employment rates and other labor market outcomes before and after the hike across regions with different shares of affected workers. We find some evidence of adverse effects of the 2007 hike in the minimum wage on employment. They are mostly visible in lower employment rates among the youth, as well as the increased informalization of employment. JEL codes: J38, J23
منابع مشابه
The Effect of Minimum Wage on Iran's Macroeconomic Variables in The Framework of a Dynamic Stochastic General Equilibrium Model
In this paper ,in order to investigate the economic effects of the minimum wage policy on macroeconomic variables in the framework of the new Keynesian theory, a dynamic stochastic equilibrium general (DSGE) model has been simulated and estimated for an open and small oil exporter economy conforming with the structure of Iran's economy in the range from 1370 to 1395 .In the above mentioned mode...
متن کاملA Menu of Minimum Wage Variables for Evaluating Wages and Employment Effects: Evidence from Brazil
A Menu of Minimum Wage Variables for Evaluating Wages and Employment Effects: Evidence from Brazil The international literature on minimum wage greatly lacks empirical evidence from developing countries. Brazil’s minimum wage policy is a distinctive and central feature of the Brazilian economy. Not only are increases in the minimum wage large and frequent but the minimum wage has also been used...
متن کاملMinimum Wages, Unemployment and Informality: Evidence from Panel Data on Russian Regions
This paper revisits labor market effects of the minimum wage by taking advantage of a unique institutional setting and rich data from Russia covering 89 regions over 10 years, from 2001 to 2010. Our empirical analysis draws on the methodology introduced by Neumark and Wascher, in which labor market outcomes at the regional level are related to the relative minimum wage (captured by the Kaitz in...
متن کاملAre Wage and Employment Effects Robust to Alternative Minimum Wage Variables?
Are Wage and Employment Effects Robust to Alternative Minimum Wage Variables? A national minimum wage cannot explain variation in wages or employment across regions. Identification of the effect of the minimum wage separately from the effect of other variables on wages or employment requires regional variation. Many minimum wage variables with regional variation have been suggested in the liter...
متن کاملThe Effect of the Minimum Wage on Prices in Brazil
The Effect of the Minimum Wage on Prices in Brazil There is very little empirical evidence on the effects of the minimum wage on prices in the international literature and none whatsoever for developing countries. This paper estimates the minimum wage price effect using monthly Brazilian household and firm data from 1982 to 2000 aggregated at a regional level. Empirical evidence on price effect...
متن کامل