01518nam a22001457a 4500 530691 530691 250709b ||||| |||| 00| 0 eng d Wicaksono, Padang et al 54921 Minimum wages and labour-intensive industry: Experience from Indonesia The Indian Journal of Labour Economics 68(1), Jan- Mar, 2025: p.119-140 There has been a long-standing debate about the effectiveness of minimum wages as a social welfare policy for labour. To continue this discussion, this study aims to compare the effects of minimum wage policy towards the employment rate and average worker’s wage in Indonesia’s labour-intensive and capital-intensive industries. By using panel data from Indonesia Annual Manufacturing Survey for the years 2011–2015, this study found that an increase in the regional minimum wage has a positive relationship with the employment rate in labour-intensive yet not in capital-intensive industries. Moreover, this study also shows the existence of a positive relationship between the minimum wage level and the average worker’s wage in labour-intensive industries. On the contrary, in capital-intensive industries, an increase in the minimum wage level significantly diminishes worker’s average wages. - Reproduced https://link.springer.com/article/10.1007/s41027-025-00563-3 minimum wages, labour intensive, capital- intensive, employment, wages 54922 AR 0 0 ddc 0 0 405887 IIPA IIPA 2025-07-09 AR136484 2025-07-09 AR