Arbeitspapier

The minimum wage and firm networks: Evidence from South Africa

There is a large literature on the minimum wage focused on directly exposed firms and geographies. This paper provides new evidence that the minimum wage has significant spillover effects on firms exposed to the minimum wage indirectly via firm supply chains. Using administrative firm-level tax data from South Africa, we study the impact of the 50 per cent agricultural minimum wage hike in 2013 on the outcomes of firms downstream from the agriculture sector with an event study design. The minimum wage increased labour costs and prices in the agriculture sector. We find that industries with greater upstream exposure to the agriculture sector experienced greater decreases in assets, sales, and employment for medium to large firms following the minimum wage increase.

ISBN
978-92-9267-040-5
Sprache
Englisch

Erschienen in
Series: WIDER Working Paper ; No. 2021/100

Klassifikation
Wirtschaft
Labor Demand
Wage Level and Structure; Wage Differentials
Informal Labor Markets
Thema
minimum wage
supply chains

Ereignis
Geistige Schöpfung
(wer)
Tan, Brandon Joel
Ereignis
Veröffentlichung
(wer)
The United Nations University World Institute for Development Economics Research (UNU-WIDER)
(wo)
Helsinki
(wann)
2021

DOI
doi:10.35188/UNU-WIDER/2021/040-5
Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Tan, Brandon Joel
  • The United Nations University World Institute for Development Economics Research (UNU-WIDER)

Entstanden

  • 2021

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