Minimum wage policy and poverty in a developing country

Crawford School of Public Policy
Photo by Uwe Aranas on Wikimedia Commons

Event details

PhD Seminar (Econ)

Date & time

Friday 19 November 2021


Online via Zoom


Nurina Merdikawati

This paper examines whether the minimum wage is an effective antipoverty instrument in Indonesia from 2002 to 2014. The study uses difference in spatial differences and finds no evidence of poverty reducing impact of minimum wage. The paper also finds that the minimum wage positively affects the household consumption per capita of not only the poor households, but also more affluent households. In terms of labour market impact, the paper finds a positive wage effect and zero employment effect in the covered (formal) sector and no wage and employment effect in the uncovered (informal) sector.

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