This paper studies the effects of a large increase in the minimum wage on the destruction of formal firms, and the associated impacts on employment, wages, and informality in a developing economy. It examines the ramifications of a 33 percent nominal increase in the minimum wage that took effect in Turkey in 2016. It utilizes an exceptionally rich, employer-employee-linked dataset that shows the wage distribution within firms, which enables to measure...
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INFORMATION
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2019/02/15
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Document de travail de recherche sur les politiques
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WPS8749
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1
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1
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2019/02/16
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Disclosed
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The Impact of the Minimum Wage on Firm Destruction, Employment and Informality
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minimum wage
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