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2006•Unpublished venueRequires access

Role of minimum wage in informal wage determination in Indonesia

Diah Widarti

Open publisher page 10 citations

Abstract

Minimum wage has been one of the most important labour market policies introduced by the Indonesian government. It aims to protect workers through its application, which is based on minimum living needs. In Indonesia, the majority of workers are involved in the informal sector. As the minimum wage policy is most likely applicable to formal firms, the study attempts in seeking the role of such wage policy in the determination of wage in the informal sector.

About this research paper

What this paper is about

Minimum wage has been one of the most important labour market policies introduced by the Indonesian government. It aims to protect workers through its application, which is based on minimum living needs. In Indonesia, the majority of workers are involved in the informal sector. As the minimum wage policy is most likely applicable to formal firms, the study attempts in seeking the role of such wage policy in the determination of wage in the informal sector.

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OpenAlex reports 10 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

Minimum wage has been one of the most important labour market policies introduced by the Indonesian government. It aims to protect workers through its application, which is based on minimum living needs. In Indonesia, the majority of workers are involved in the informal sector. As the minimum wage policy is most likely applicable to formal firms, the study attempts in seeking the role of such wage policy in the determination of wage in the informal sector.

Key concepts: Informal sector, Minimum wage, Labour economics, Indonesian, Wage, Indonesian government, Government (linguistics), Economics

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