Tuesday, September 27, 2005

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[IWS] Upjohn: SOUTH AFRICA MINIMUM WAGE Effects on DOMESTIC SERVICE WORKERS [August 2005]

IWS Documented News Service
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Institute for Workplace Studies                   Professor Samuel B. Bacharach
School of Industrial & Labor Relations           Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor                    Stuart Basefsky
New York, NY 10016                        Director, IWS News Bureau
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The Effect of Minimum Wages on the Employment and Earnings of South Africa's Domestic Service Workers,
http://www.upjohninst.org/publications/wp/05-120.pdf
[full-text, 60 pages]
Upjohn Institute Working Paper 05-120
Tom Hertz , 2005. [15 August 2005]

Abstract
http://www.upjohninst.org/publications/wp/05120wp.html

Minimum wages have been in place for South Africa's one million domestic service workers since November of 2002. Using data from seven waves of the Labour Force Survey, this paper documents that the real wages, average monthly earnings, and total earnings of all employed domestic workers have risen since the regulations came into effect, while hours of work per week and employment have fallen. Each of these outcomes can be linked econometrically to the arrival of the minimum wage regulations. The overall estimated elasticities suggest that the regulations should have reduced poverty somewhat for domestic workers, although this last conclusion is the least robust.
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16 E. 34th Street, 4th Floor             *
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