IDEAS home Printed from https://ideas.repec.org/p/phd/dpaper/dp_2017-55.html
   My bibliography  Save this paper

Countering the Discriminatory Impact of Minimum Wages Against Disadvantaged Workers: Literature Review and Experimental Design Development

Author

Listed:
  • Orbeta, Aniceto Jr. C.
  • Paqueo, Vicente B.

Abstract

It is a common belief that government should set legal minimum wages (LMW) to a level that would enable workers and their families to live decent lives. Evidence, however, has shown that a higher and more rapid pace of LMW growth leads to lower demand for labor overall. Specifically, it leads to reduced hours, lower employment rate, reduced household income, and higher poverty incidence. In addition, these adverse effects impact particularly disadvantaged population groups that include the young, inexperienced, low educated, and women - in general, people with little human capital and poor job credentials. On this score, it is arguable that the government is morally obligated to attenuate the above discriminatory effects against the poor and disadvantaged - effects that were created by its labor regulations. The question is: How? More precisely, what are affordable interventions to effectively address the issue?This research reviews the global experience on initiatives to counter the discriminatory impact of LMW and related labor regulations. It also summarizes the analyses done to date for similar programs in the country. Knowledge gained from the review would be used to design an experimental study measuring impact of such initiatives. Some design ideas on evaluating these programs are also presented.

Suggested Citation

  • Orbeta, Aniceto Jr. C. & Paqueo, Vicente B., 2017. "Countering the Discriminatory Impact of Minimum Wages Against Disadvantaged Workers: Literature Review and Experimental Design Development," Discussion Papers DP 2017-55, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2017-55
    as

    Download full text from publisher

    File URL: https://www.pids.gov.ph/publication/discussion-papers/countering-the-discriminatory-impact-of-minimum-wages-against-disadvantaged-workers-literature-review-and-experimental-design-development
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Martin Abel & Rulof Burger & Patrizio Piraino, 2017. "The value of reference letters," Working Papers 06/2017, Stellenbosch University, Department of Economics.
    2. Maitra, Pushkar & Mani, Subha, 2017. "Learning and earning: Evidence from a randomized evaluation in India," Labour Economics, Elsevier, vol. 45(C), pages 116-130.
    3. Levinsohn, James & Pugatch, Todd, 2014. "Prospective analysis of a wage subsidy for Cape Town youth," Journal of Development Economics, Elsevier, vol. 108(C), pages 169-183.
    4. World Bank, 2016. "Republic of the Philippines Labor Market Review," World Bank Publications - Reports 24768, The World Bank Group.
    5. Emanuela Galasso & Martin Ravallion & Agustin Salvia, 2004. "Assisting the Transition from Workfare to Work: A Randomized Experiment," ILR Review, Cornell University, ILR School, vol. 58(1), pages 128-142, October.
    6. Sarojini Hirshleifer & David McKenzie & Rita Almeida & Cristobal Ridao‐Cano, 2016. "The Impact of Vocational Training for the Unemployed: Experimental Evidence from Turkey," Economic Journal, Royal Economic Society, vol. 126(597), pages 2115-2146, November.
    7. Beam, Emily A., 2016. "Do job fairs matter? Experimental evidence on the impact of job-fair attendance," Journal of Development Economics, Elsevier, vol. 120(C), pages 32-40.
    8. Simon Franklin, 2015. "Location, search costs and youth unemployment: A randomized trial of transport subsidies in Ethiopia," CSAE Working Paper Series 2015-11, Centre for the Study of African Economies, University of Oxford.
    9. Matthew Groh & Nandini Krishnan & David McKenzie & Tara Vishwanath, 2016. "Do Wage Subsidies Provide a Stepping-Stone to Employment for Recent College Graduates? Evidence from a Randomized Experiment in Jordan," The Review of Economics and Statistics, MIT Press, vol. 98(3), pages 488-502, July.
    10. Ibarrarán, Pablo & Kluve, Jochen & Ripani, Laura & Shady, David Rosas, 2015. "Experimental evidence on the long term impacts of a youth training program," Ruhr Economic Papers 562, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    11. David Card & Pablo Ibarrarán & Ferdinando Regalia & David Rosas-Shady & Yuri Soares, 2011. "The Labor Market Impacts of Youth Training in the Dominican Republic," Journal of Labor Economics, University of Chicago Press, vol. 29(2), pages 267-300.
    12. Orbeta, Aniceto Jr. C. & Lanzona, Leonardo & Paqueo, Vicente B. & Dulay, Dean Gerard C., 2014. "Labor Policy Analysis for Jobs Expansion and Development," Discussion Papers DP 2014-34 (revised), Philippine Institute for Development Studies.
    13. Orazio Attanasio & Adriana Kugler & Costas Meghir, 2011. "Subsidizing Vocational Training for Disadvantaged Youth in Colombia: Evidence from a Randomized Trial," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 188-220, July.
    14. Matthew Groh & David McKenzie & Nour Shammout & Tara Vishwanath, 2015. "Testing the importance of search frictions and matching through a randomized experiment in Jordan," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-20, December.
    15. Orazio Attanasio & Arlen Guarín & Carlos Medina & Costas Meghir, 2017. "Vocational Training for Disadvantaged Youth in Colombia: A Long-Term Follow-Up," American Economic Journal: Applied Economics, American Economic Association, vol. 9(2), pages 131-143, April.
    16. repec:phd:dpaper:dp_2014-34_(revised is not listed on IDEAS
    17. Ibarrarán, Pablo & Kluve, Jochen & Ripani, Laura & Rosas Shady, David, 2015. "Experimental Evidence on the Long-Term Impacts of a Youth Training Program," IZA Discussion Papers 9136, Institute of Labor Economics (IZA).
    18. repec:phd:dpaper:dp_2014-34 is not listed on IDEAS
    19. Orbeta, Aniceto Jr. C. & Abrigo, Michael Ralph M., 2012. "An Assessment of TESDA Scholarship Programs," Discussion Papers DP 2012-25, Philippine Institute for Development Studies.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David McKenzie, 2017. "How Effective Are Active Labor Market Policies in Developing Countries? A Critical Review of Recent Evidence," The World Bank Research Observer, World Bank, vol. 32(2), pages 127-154.
    2. Chakravarty, Shubha & Lundberg, Mattias & Nikolov, Plamen & Zenker, Juliane, 2019. "Vocational training programs and youth labor market outcomes: Evidence from Nepal," Journal of Development Economics, Elsevier, vol. 136(C), pages 71-110.
    3. Chakravarty, Shubha & Lundberg, Mattias & Nikolov, Plamen & Zenker, Juliane, 2019. "Vocational training programs and youth labor market outcomes: Evidence from Nepal," Journal of Development Economics, Elsevier, vol. 136(C), pages 71-110.
    4. Livia Alfonsi & Oriana Bandiera & Vittorio Bassi & Robin Burgess & Imran Rasul & Munshi Sulaiman & Anna Vitali, 2020. "Tackling Youth Unemployment: Evidence From a Labor Market Experiment in Uganda," Econometrica, Econometric Society, vol. 88(6), pages 2369-2414, November.
    5. Girum Abebe & A Stefano Caria & Marcel Fafchamps & Paolo Falco & Simon Franklin & Simon Quinn, 2021. "Anonymity or Distance? Job Search and Labour Market Exclusion in a Growing African City [Endogenous Stratification in Randomized Experiments]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(3), pages 1279-1310.
    6. Santiago Caicedo & Miguel Espinosa & Arthur Seibold, 2022. "Unwilling to Train?—Firm Responses to the Colombian Apprenticeship Regulation," Econometrica, Econometric Society, vol. 90(2), pages 507-550, March.
    7. Camargo Juliana & Lima Lycia & Riva Flavio & Souza André Portela, 2021. "Technical Education, Non-cognitive Skills and Labor Market Outcomes: Experimental Evidence from Brazil," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-34, January.
    8. Evan Borkum & Kristen Velyvis & Arif Mamun & Malik Khan Mubeen & Anca Dumitrescu & Ananya Khan, "undated". "Evaluation of MCC's Investments in Community Skills Development Centers in Namibia: Final Report," Mathematica Policy Research Reports 45805b53759348d48f2d0d569, Mathematica Policy Research.
    9. Abebe, Girum & Caria, Stefano & Fafchamps, Marcel & Falco, Paolo & Franklin, Simon & Quinn, Simon, 2017. "Anonymity of distance? Job search and labour market exclusion in a growing African city," LSE Research Online Documents on Economics 86573, London School of Economics and Political Science, LSE Library.
    10. Paloma Acevedo & Guillermo Cruces & Paul Gertler & Sebastian Martinez, 2017. "Living Up to Expectations: How Job Training Made Women Better Off and Men Worse Off," NBER Working Papers 23264, National Bureau of Economic Research, Inc.
    11. María laura Alzúa & Guillermo Cruces & Carolina Lopez, 2016. "Long-Run Effects Of Youth Training Programs: Experimental Evidence From Argentina," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1839-1859, October.
    12. Chakravorty, Bhaskar & Arulampalam, Wiji & Bhatiya, Apurav Yash & Imbert, Clément & Rathelot, Roland, 2024. "Can information about jobs improve the effectiveness of vocational training? Experimental evidence from India," Journal of Development Economics, Elsevier, vol. 169(C).
    13. Osman, Adam & Speer, Jamin D., 2023. "Stigma and Take-up of Labor Market Assistance: Evidence from Two Field Experiments," IZA Discussion Papers 16599, Institute of Labor Economics (IZA).
    14. Verónica Escudero & Jochen Kluve & Elva López Mourelo & Clemente Pignatti, 2019. "Active Labour Market Programmes in Latin America and the Caribbean: Evidence from a Meta-Analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 55(12), pages 2644-2661, December.
    15. Emily A. Beam & Stella Quimbo, 2023. "The Impact of Short-Term Employment for Low-Income Youth: Experimental Evidence from the Philippines," The Review of Economics and Statistics, MIT Press, vol. 105(6), pages 1379-1393, November.
    16. Das, Narayan, 2021. "Training the disadvantaged youth and labor market outcomes: Evidence from Bangladesh," Journal of Development Economics, Elsevier, vol. 149(C).
    17. Carla Calero & Sandra V. Rozo, 2016. "The effects of youth training on risk behavior: the role of non-cognitive skills," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-27, December.
    18. Beber, Bernd & Dworschak, Regina & Lakemann, Tabea & Lay, Jann & Priebe, Jan, 2021. "Skills Development and Training Interventions in Africa: Findings, Challenges, and Opportunities," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 247426.
    19. Girum Abebe & Stefano Caria & Marcel Fafchamps & Paolo Falco & Simon Franklin & Simon Quinn, 2016. "Curse of Anonymity or Tyranny of Distance? The Impacts of Job-Search Support in Urban Ethiopia," CSAE Working Paper Series 2016-10, Centre for the Study of African Economies, University of Oxford.
    20. Chowdhury, Shyamal & Hasan, Syed & Sharma, Uttam, 2024. "The Role of Trainee Selection in the Effectiveness of Vocational Training: Evidence from a Randomized Controlled Trial in Nepal," IZA Discussion Papers 16705, Institute of Labor Economics (IZA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:phd:dpaper:dp_2017-55. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Aniceto Orbeta (email available below). General contact details of provider: https://edirc.repec.org/data/pidgvph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.