A NOTE ON MEASURING THE DEPTH OF MINIMUM WAGE VIOLATION

In the empirical literature on minimum wage enforcement, the standard approach is to measure the number of violations, not their depth. In this paper we present a family of violation indices which, by analogy with poverty indices, can emphasize the depth of violation to different degrees. The standard measure is a special case of this family of indices, but other members of the family highlight the depth of violation. We present an application to South Africa to show that the depth of violation matters, and is not captured by the standard measure in actual situations.


Issue Date:
2011
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/126533
Total Pages:
9
JEL Codes:
J38; O55
Series Statement:
WP
2011-03




 Record created 2017-04-01, last modified 2017-04-26

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