[Journal:] IZA World of Labor [ISSN:] 2054-9571 [Year:] 2014 [Issue:] 52
Motivations for introducing a statutory minimum wage in developing countries include reducing poverty, advancing social justice, and accelerating growth. Attaining these goals depends on the national context and policy choices. Institutional capacity tends to be limited, so institutional arrangements must be adapted. Nevertheless, a statutory minimum wage could help developing countries advance their development objectives, even where enforcement capacity is weak and informality is pervasive.
minimum wages institutional design developing countries informality enforcement