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How Does Decentralised Minimum‑Wage Setting Affect Unemployment and Informality?: The Case of Indonesia

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Organisation for Economic Co-operation and Development2026-04-11 收录
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https://www.oecd.org/en/publications/how-does-decentralised-minimum-wage-setting-affect-unemployment-and-informality_222850046464.html
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The Indonesian labour market is characterised by widespread informality. To some extent, these outcomes can be attributed to a sharp increase in the real value of the minimum wage since 2001, when minimum-wage setting was decentralised to the provincial governments. To test this hypothesis, this paper uses survey data on the labour market...
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