Using district-level data for urban areas in Java, we assess the impact of minimum wages on formal- and informal-sector employment, unemployment and labour participation. We employ the spatial Durbin model for our estimation and allow labour markets to be spatially correlated across districts. Our findings suggest that a minimum-wage rise affects mainly the local labour market where the minimum-wage increase occurs. The spillover effects of a minimum-wage increase on neighbouring districts are negligible, except for the impact on labour participation. The results of this study highlight the need to account for spatial dependence when modelling formal-sector employment, unemployment and labour participation, as we found those variables to be geographically correlated, at least across districts in Java.

我们使用爪哇城市地区的地区级数据，评估最低工资对正规和非正规部门就业、失业和劳动参与的影响。我们采用空间杜宾模型进行估计，并允许劳动力市场在不同地区之间具有空间相关性。我们的研究结果表明，最低工资上涨主要影响发生最低工资上涨的当地劳动力市场。除了对劳动力参与的影响外，提高最低工资对邻近地区的溢出效应可以忽略不计。本研究的结果强调了在对正规部门就业、失业和劳动参与进行建模时需要考虑空间依赖性，因为我们发现这些变量在地理上是相关的，至少在爪哇的各个地区之间是相关的。