Publication

This paper assesses the impact of minimum wage policy on labor market outcomes in Indonesia, in particular in the urban formal sector. It investigates the wage and employment impacts of minimum wages through an econometric approach using the data from national labor force surveys. It then assesses the impact of the policy for different types of workers. Finally, it analyzes the changes in wage distribution due to the imposition of minimum wages and investigates the impact of the minimum wage policy on average wage and employment level in the country.