Bulletin of Indonesian Economic Studies ( IF 2.0 ) Pub Date : 2022-08-18 , DOI: 10.1080/00074918.2021.1914817 Tifani Husna Siregar 1
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.
中文翻译:
调查最低工资对 Java 就业、失业和劳动参与的影响:动态空间面板方法
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。