This paper proposes a new framework to empirically assess the effects of the minimum wage in a developing country. This approach allows us to jointly estimate the effects of the minimum wage on unemployment, average wages, sector mobility, wage inequality, the size of the informal sector and on...

While proponents argue that minimum wage laws are essential in improving social welfare and economic well-being, implementation of minimum wage laws can also be associated with increased unemployment and the movement of workers into the informal sector where worker protection and workplace...

In this paper it is argued that the domestic division of labor and trade is organized according to the same principle as the international division of labor and trade – the Ricardian comparative advantages. After all, the ultimate source of these comparative advantages is the individual. The...

This paper studies worker displacement in the United States and the Netherlands. We discuss the relevant institutions, and we analyze the incidence and consequences of displacement. In the 1993-1995 period, displacement rates in the US and the Netherlands are about the same, and vary similarly...

High unemployment rates among educated workers in Morocco and many other developing countries is a serious issue. The worsening unemployment problem among educated workers in Morocco started with the cuts to public sector hiring under structural adjustment policies implemented in 1983. Thus,...

Nonemployment is often posited as a worker's outside option in wage setting models such as bargaining and wage posting. The value of this state is therefore a fundamental determinant of wages and, in turn, labor supply and job creation. We measure the effect of changes in the value of...

Nonemployment is often posited as a worker’s outside option in wage setting models such as bargaining and wage posting. The value of this state is therefore a fundamental determinant of wages and, in turn, labor supply and job creation. We measure the effect of changes in the value of...

We investigate transitions between unemployment, low-paid employment and higher-paid employment using household panel data for the period 2001 to 2011. Dynamic panel data methods are used to estimate the effects of labour force status on subsequent labour force status. A distinctive feature of...

The COVID-19 pandemic can change the reservation wage because of changes in people’s preferences due to the risk of infection, the rapid rise of work at home, or a worsened household economy. Furthermore, the changing reservation wage changes the decision to work, especially for the second...

We study the impact of graduating in a recession in Flanders (Belgium), i.e. in a rigid labor market. In the presence of a high minimum wage, a typical recession hardly influences the hourly wage of low educated men, but reduces working time and earnings by about 4.5% up to twelve years after...