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Minimum Wages and Poverty in India

Lindelöw, Viktor LU (2019) EKHS21 20191
Department of Economic History
Abstract
A minimum wage policy has often been implemented to get workers out of poverty. However, the policy’s impact has been questioned, both theoretically and empirically, whether it fulfils its purpose. The aim of this study is to investigate the effects of minimum wage on poverty in India. After the liberal reforms in 1991 has India been growing steadily, which has been followed by decreasing poverty rates. How minimum wages, stated as the most important labour regulation within the country, has contributed to this development has not yet been examined. By analysing Indian household and individual data, this study estimates the impact of minimum wages on poverty by utilizing a probit method. Particularly, the study distinguishes between... (More)
A minimum wage policy has often been implemented to get workers out of poverty. However, the policy’s impact has been questioned, both theoretically and empirically, whether it fulfils its purpose. The aim of this study is to investigate the effects of minimum wage on poverty in India. After the liberal reforms in 1991 has India been growing steadily, which has been followed by decreasing poverty rates. How minimum wages, stated as the most important labour regulation within the country, has contributed to this development has not yet been examined. By analysing Indian household and individual data, this study estimates the impact of minimum wages on poverty by utilizing a probit method. Particularly, the study distinguishes between sectors, industries and employment differences. Additionally, it uses several poverty lines for capturing how minimum wages are different along the income distribution. The study suggest that minimum wages have had an overall positive impact on poverty in India. A result that is primarily driven by the rural sector. (Less)
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author
Lindelöw, Viktor LU
supervisor
organization
course
EKHS21 20191
year
type
H1 - Master's Degree (One Year)
subject
keywords
Minimum Wage, Poverty, India, Labour Market, Monopsony
language
English
id
8983078
date added to LUP
2019-09-16 13:33:10
date last changed
2019-09-16 13:33:10
@misc{8983078,
  abstract     = {A minimum wage policy has often been implemented to get workers out of poverty. However, the policy’s impact has been questioned, both theoretically and empirically, whether it fulfils its purpose. The aim of this study is to investigate the effects of minimum wage on poverty in India. After the liberal reforms in 1991 has India been growing steadily, which has been followed by decreasing poverty rates. How minimum wages, stated as the most important labour regulation within the country, has contributed to this development has not yet been examined. By analysing Indian household and individual data, this study estimates the impact of minimum wages on poverty by utilizing a probit method. Particularly, the study distinguishes between sectors, industries and employment differences. Additionally, it uses several poverty lines for capturing how minimum wages are different along the income distribution. The study suggest that minimum wages have had an overall positive impact on poverty in India. A result that is primarily driven by the rural sector.},
  author       = {Lindelöw, Viktor},
  keyword      = {Minimum Wage,Poverty,India,Labour Market,Monopsony},
  language     = {eng},
  note         = {Student Paper},
  title        = {Minimum Wages and Poverty in India},
  year         = {2019},
}