The author is grateful to Malte Luebker, Deirdre McCann, Bill Salter, the participants in the Second Conference on Regulating for Decent Work (July 2011, Geneva) and two anonymous referees, for their helpful comments, and to Darya Moldavskaya and Ga-Young So for their editorial suggestions.
“Varieties of minimum wage system” through the dubious lens of indicator-based rankings
Article first published online: 17 SEP 2012
Copyright © The author 2012 Journal compilation © International Labour Organization 2012
International Labour Review
Special Issue: Low-Paid Work in Emerging Economies
Volume 151, Issue 3, pages 261–275, September 2012
How to Cite
LEE, S. (2012), “Varieties of minimum wage system” through the dubious lens of indicator-based rankings. International Labour Review, 151: 261–275. doi: 10.1111/j.1564-913X.2012.00148.x
Responsibility for opinions expressed in signed articles rests solely with their authors, and publication does not constitute an endorsement by the ILO.
- Issue published online: 17 SEP 2012
- Article first published online: 17 SEP 2012
- minimum wage;
- wage payment system;
- wage determination;
- labour flexibility;
- developed countries;
- developing countries
Growing interest in the impact of labour regulations on labour market performance has prompted attempts to quantify labour standards for cross-country comparison. While recognizing the contribution of such quantification to empirical research, this article takes issue with indicators that purport to rank countries' regulatory regimes. With reference to the minimum wage component of the World Bank's Doing Business indicators, the author identifies major limitations of this device – theoretical bias, measurement error, disregard of institutional particulars and failure to account for regulatory indeterminacy. His examination of minimum wage systems concludes with an argument against the grounding of policy decisions on indicator-based rankings.