000 01518nam a22001457a 4500
999 _c530691
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008 250709b ||||| |||| 00| 0 eng d
100 _aWicaksono, Padang et al
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245 _aMinimum wages and labour-intensive industry: Experience from Indonesia
260 _a The Indian Journal of Labour Economics
300 _a68(1), Jan- Mar, 2025: p.119-140
520 _aThere 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
650 _aminimum wages, labour intensive, capital- intensive, employment, wages
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773 _0 The Indian Journal of Labour Economics
942 _cAR