Using survey data from the Indonesian manufacturing industry, this paper investigates the impact of minimum wage on employment and wages offered by Indonesian manufacturing firms from 1993 to 2006. It shows that the estimated effects of minimum wage on employment are positive within a province (i.e., with province fixed effects), but negative within a firm (i.e., with firm fixed effects), indicating the importance of using firm panel data to reduce...
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INFORMATION
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2012/07/01
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Document de travail de recherche sur les politiques
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WPS6147
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1
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1
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2012/07/01
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Disclosed
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Does the minimum wage affect employment ? evidence from the manufacturing sector in Indonesia
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minimum wage
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