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In this study an individual-level data set is used to study the impact of the official minimum wage on a host of labour market outcomes in Cyprus, where the legislative coverage is limited to only a few occupations. In the remaining occupations bipartite collective bargaining is not subject to an institutional minimum. The evidence indicates that m...
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Context 1
... estimated effect is smaller for those at the bottom of the wage distribution. As previously explained, this may be due to that workers earning less than or at the minimum wage before the minimum wage increase, are the ones more likely to lose their jobs and not be included in the sample used to calculate the wage effects (see also the result in Table 4, later on). Table 3 presents estimates for α1 in equation (1) in Section 4.1 for samples identified by row and column. ...Context 2
... estimates of the impact of minimum wages on the probability of employment are reported in Table 4. A negative number indicates than a higher minimum wage reduces the probability that a worker is gainfully employed. ...Context 3
... of the empirical evidence for developing countries points to negative employment effects from the minimum wage in the informal sector, in particular when wages are set at relatively high levels in relation to the median wage (see Table 1). 23 Table 4 presents marginal effects evaluated at the means of all variables, from estimates of β1 in equation (2) in Section 4.2 for samples identified by row and column, using Probit regressions. The key independent variable is log of the real minimum wage and a positive coefficient means that higher minimum wages increase the probability that a worker is gainfully employed in the indicated workers' group. ...Context 4
... increasing outside option improves their bargaining position and ability to demand higher wages in the productive (uncovered) sector, leaving firms less willing to hire. Therefore, as in Table 4, the effect of a minimum wage increase on employment is higher in the uncovered workers as compared to the covered workers. ...Context 5
... it is examined whether the selected wage sub-sample (used in the estimates reported in Table 3) is representative of the larger employment sample (used in the estimates reported in Table 4). This test is performed by estimating a two-equation system using a Probit mechanism and the Maximum Likelihood (ML) method. ...Context 6
... the wages and employment equations are re-estimated: i) substituting the log of the real minimum wage with the Kaitz index described in Section 2, ii) excluding the GDP growth as an independent variable and iii) using only data from workers aged 20-59. The estimated marginal effects from these specifications are summarized in Tables B.4 and B.5 of Appendix B. The results are quite similar to those in Tables 3 and 4 in terms of sign and significance. Thus, the results of the previous sections do not appear to be sensitive to the minimum wage measure used, to the inclusion or exclusion of the GDP variable, or suffer from measurement error bias created by including workers near the retirement age in the sample. ...Context 7
... these results were interpreted in the Moser and Stahler (2009) framework, then they would suggest existence of significant spillover effects to the occupations that are not covered by the minimum wage legislation. This is consistent with the results in Table 4, where an increase in the legal minimum wage is indicated to cause a statistically significant fall in employment in the uncovered workers. ...Similar publications
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Citations
... That study differed from the present one in terms of the common choices made for the 26-country 'working samples', reducing the comparability of the GWG estimates with those that specifically pertain to Cyprus. 3 These 4-digit, female-dominated, occupations were: salespersons; clerks; auxiliary healthcare staff; auxiliary staff in nurseries; auxiliary staff in crèches; auxiliary staff in schools; guards; caretakers working in clinics, private hospitals and nursing homes; and cleaners of corporate premises.Christofides and Mitsis (2023) explored the influence of the MW on earnings in these occupations. In other work for Cyprus,Mitsis (2013Mitsis ( , 2015Mitsis ( , and 2019 addressed the impact of the MW on other labour market outcomes. it also presents the GWG decompositions for the four surveys (section 4.2) andinvestigates their robustness to changes in the specification of the wage equations that underlie the decompositions (section 4.3). ...
Papers are of the authors and do not necessarily represent the ERC. Η διαχρονική εξέλιξη του έμφυλου μισθολογικού χάσματος της Κύπρου Λούης Ν. Χριστοφίδης και Παντελής Μιτσής ΠΕΡΙΛΗΨΗ Οι διαθέσιμες οικονομετρικές μελέτες για το Έμφυλο Μισθολογικό Χάσμα (ΕΜΧ) που είναι εξ ολοκλήρου αφιερωμένες στην Κύπρο προηγούνται της ένταξης της χώρας μας στην Ευρωπαϊκή Ένωση (το 2004). Η παρούσα εργασία στοχεύει να καλύψει το χρονικό κενό μέχρι σήμερα, χρησιμοποιώντας λεπτομερή (4 α-ψήφια) στοιχεία από τις Διαρθρωτικές Έρευνες Απολαβών (ΔΕΑ) του 2006, 2010, 2014 και 2018. Ο στόχος αυτός πραγματοποιείται (α) απομονώνοντας το μερίδιο του ΕΜΧ που μπορεί να εξηγηθεί από τα παραγωγικά χαρακτηριστικά των εργαζομένων (το εξηγούμενο ΕΜΧ), λαμβάνοντας υπόψη (β) την ενδεχόμενη επίδραση του κατωτάτου μισθού στα επαγγέλματα που καθορίζονται από τη σχετική νομοθεσία, καθώς και (γ) τον τομέα απασχόλησης των εργαζομένων. Στην ΔΕΑ του 2006, το ολικό ΕΜΧ υπολογίζεται ως 0.186 (μη σταθμισμένες) και 0.267 (σταθμισμένες) λογαριθμικές μονάδες μισθών, αρκετά χαμηλότερα, δηλαδή, από ό,τι στις προ-υπάρχουσες μελέτες για παλαιότερα έτη. Η πτωτική αυτή πορεία του ολικού ΕΜΧ συνεχίζεται και τα επόμενα έτη, υπολογιζόμενο σε 0.169 (μη σταθμισμένες) και 0.197 (σταθμισμένες) μονάδες από τα δεδομένα της ΔΕΑ του 2010, και 0.160 (μη σταθμισμένες) και 0.124 (σταθμισμένες) μονάδες, από τα δεδομένα της ΔΕΑ του 2014. Κατά το 2018, το τελευταίο έτος για οποίο υπάρχουν διαθέσιμα δεδομένα, το ολικό ΕΜΧ ήταν 0.100 (μη σταθμισμένες) και 0.103 (σταθμισμένες) λογαριθμικές μονάδες μισθών. Το εξηγούμενο ΕΜΧ επίσης μειώθηκε με την πάροδο του χρόνου σε βαθμό που το 2018 να υπολογίζεται κοντά στο μηδέν, τόσο από τα σταθμισμένα όσο και από τα μη σταθμισμένα δεδομένα. Αυτό πιθανόν να υποδηλοί τη σύγκλιση των μεταβλητών (παραγωγικών χαρακτηριστικών) των ΔΕΑ, στις μέσες τους τιμές, τόσο για τους άνδρες όσο και για τις γυναίκες. Όντως, στα δεδομένα του 2018 παρατηρείται, κατά μέσο όρο, ότι (α) περισσότερες γυναίκες από ό,τι άνδρες είχαν ολοκληρώσει πανεπιστημιακή εκπαίδευση, (β) οι γυναίκες έχαιραν εξίσου μακρά ή μεγαλύτερη περίοδο εργοδότησης στον ίδιο εργοδότη, και (γ) είχαν συγκρίσιμο ιστορικό με τους άνδρες στην κατοχή συμβάσεων αορίστου χρόνου. Το υπόλοιπο, ανεξήγητο, μέρος του ΕΜΧ του 2018, το οποίο στις 0.100 λογαριθμικές μονάδες μισθών ήταν περίπου ίσο με ολόκληρο το ΕΜΧ, μπορεί να σχετίζεται με υπολειμματικές διακρίσεις, αλλά και με τη φύση των θέσεων εργασίας, τη δημιουργία οικογένειας και τη λειτουργία της, καθώς και με τις πολιτικές συμφιλίωσης της εργασίας με την οικογένεια. Αυτά τα θέματα αποτελούν, επί του παρόντος, αντικείμενο σημαντικής ακαδημαϊκής προσοχής διεθνώς. Η μελέτη ολοκληρώνεται με μια ανασκόπηση των συμπερασμάτων της διεθνούς βιβλιογραφίας τα οποία δύνανται να προσφέρουν μαθήματα πολιτικής για την Κύπρο.
... The portion of the Ph.D. thesis of Mitsis (2013) which relates to the history and labour market effects of the MW in Cyprus appeared in Mitsis (2015Mitsis ( , 2019. Mitsis (2019) used the three CSHEIs mentioned above, along with the more recent 2008/9 CSHEI. ...
... The portion of the Ph.D. thesis of Mitsis (2013) which relates to the history and labour market effects of the MW in Cyprus appeared in Mitsis (2015Mitsis ( , 2019. Mitsis (2019) used the three CSHEIs mentioned above, along with the more recent 2008/9 CSHEI. ...
Existing econometric studies on the Gender Wage Gap (GWG) in Cyprus, which (i) net out of the raw GWG the portion that can be explained by productive characteristics, (ii) take into account possible effects from the Minimum Wage (MW) in calculating the GWG, (iii) do so, using fine occupations which correspond to the legal implementation of the MW, and (iv) are as up-to-date as existing data allow, are not available. This paper aims to fill this gap using 4-digit data from the 2006, 2010, 2014, and 2018 Structure of Earnings Survey (SES) data. The unconditional GWG in the four surveys was 0.316, 0.225, 0.113 and 0.117 ln wage points respectively. In the first two surveys, netting out the Explained contribution of productive characteristics removes a substantial amount from the GWG, leaving an Unexplained GWG of 0.217 and 0.135 ln wage points. By the time of the last two surveys, which overlap with the Cyprus Crisis (2012-2016) and its effects on the labour market, no further role is left for the available explanatory variables, leaving the Unexplained component for 2014 and 2018 at 0.118 and 0.110 ln wage points respectively; the total Explained portion is not significantly different from zero in either 2014 or 2018. The high Unexplained levels of the GWG prompt the question of whether reductions in the GWG through explanatory variables have stalled, a concern raised in several international studies.
... The competitive model in Figure 1 assumes workers are homogenous with a downward sloping labor demand because of the decreasing marginal product of labor (Kreiner et al., 2020). When MW is introduced above the equilibrium wage (W1), the model predicts disemployment (E1) because there will be a surplus of labor as a result of an increase in labor supply, but a decrease in labor demand (Mitsis, 2019). On the contrary, the monopsonistic model developed by Robinson (1969) explains the potential positive employment impact of MW in Figure 2. In this model, the employer can set wages below the marginal revenue product (WMP) if he/she hires fewer workers (EMP). ...
On 1st May 2022, the Malaysian government raised the minimum wage (MW) to RM1,500, with a 25% increase. Even though there seem to be some signs of economic recovery, the Malaysian economy has yet to crawl out of a downturn. MW has been one of the most debated and controversial topics in economic literature due to mixed results on employment. While it may be too early for any empirical study on the impact of this recent hike, we are not completely clueless about what to expect. This paper aims to offer valuable insights into the potential implications of the new minimum wage policy (MWP) through a narrative literature review approach. Although no conclusive prediction can be made, the literature on developing countries with high MW increases seems to suggest that higher disemployment, reduced foreign worker dependency, formal sector (FS) migration to the informal sector (IS), and higher non-compliance are likely to be expected. This paper contributes to the understanding of MW in developing countries. Based on the channel of adjustment (CoA) model, alternate suggestions are offered to small and medium enterprises (SMEs) to better cope with the financial stress caused by MWP.
