The impact of legal minimum wages on employment, income and poverty incidence in the Philippines ; PIDS: Discussion Paper Series ; No. 2016-54.

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Autor/Urheber	Vicente B. Paqueo; Aniceto Orbeta; Leonardo Lanzona
Titel	The impact of legal minimum wages on employment, income and poverty incidence in the Philippines ; PIDS: Discussion Paper Series ; No. 2016-54.
Quelle	Philippine Institute for Development Studies (2016) PDF als Volltext kostenfreie Datei
Sprache	englisch
Dokumenttyp	online; Monographie
Schlagwörter	Alleviating Poverty; Anti-Poverty; Extreme Poverty; Fight Against Poverty; Global Poverty; Health Aspects Of Poverty; Indicators Of Poverty; Participatory Poverty Assessment; Poverty Eradication; Poverty Analysis; Poverty In Developing Countries; Urban Poverty; Performance Evaluation; Evaluation Criteria; Development Indicators; Environmental Indicators; Economic Indicators; Educational Indicators; Demographic Indicators; Health Indicators; Disadvantaged Groups; Socially Disadvantaged Children; Aging; Social Conditions; Urban Development; Urban Sociology; Project finance; Needs assessment; Cost benefit analysis; Poor; Economic forecasting; Health expectancy; Social groups; Political participation; Distribution of income; Inequality of income; Developing countries; Mass society; Social change; Social policy; Social stability; Population; Sustainable development; Peasantry; Urban policy; Urban renewal; Participatory monitoring and evaluation; Cost effectiveness
Abstract	It is commonly believed that mandating higher legal minimum wages (LMWs) is needed to help the poor earn a level of income that would allow them healthy and dignified lives. It is also seen as a tool to protect the weak against exploitation. This popular belief motivates and justifies the recurrent demands for hefty increases in LMW. But what is the empirical evidence behind this? This article seeks to address this question. It finds that in the Philippines, higher LMWs: (i) are likely to reduce the work hours of average workers; (ii) can be disadvantageous against the very groups that LMWs are intended to protect; (iii) decrease the employment probability of the young, inexperienced, less educated and women laborers; and (iv) tends to ironically reduce average income and raise household poverty rate. These results illustrate how rapid rises in LMWs can be counter-productive and can go against the spirit of equal protection principle of the Constitution. If the goal is to help the poor and protect the weak, then these findings warrant the need to think more deeply and prudently about the use of LMWs and to consider other tools for achieving decent wages.
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