The Effect of Minimum Wage on Poverty

TitleThe Effect of Minimum Wage on Poverty
Publication TypeJournal Article
Year of Publication2015
AuthorsKapelyuk, Sergey
JournalEconomics of Transition
Pagination389 - 423
Date Published2015///
Keywordslow-wage workers, minimum wage, poverty, Russia

To the best of my knowledge, the minimum wage's influence on poverty in Russia has never been investigated. Russian data provide a unique opportunity for studying the effects of the minimum wage on poverty, given significant increases in the minimum wage in recent years, almost complete coverage, and a high representation of full-time workers in poor households. This article examines the effect of the minimum wage on the incidence of poverty and the transitions into and out of poverty in Russia using data from the Russia Longitudinal Monitoring Survey of Higher School of Economics (RLMS‐HSE) from 2006 to 2011. The results indicate that the minimum wage in Russia had moderate poverty‐reducing effects.