Scholarlink

<p>This paper examines the effect of regional minimum wage increases on inflation in the Philippines using monthly regional data and a reduced-form model grounded in a simple general equilibrium framework. The empirical analysis shows that a 10% increase in the regional minimum wage raises regional headline inflation by about 0.4% point contemporaneously, with larger cumulative effects over six and twelve months. Regions and consumption items with higher concentrations of minimum-wage labor drive the observed price responses. To address endogeneity concerns, the study exploits the sequencing of minimum wage announcements led by the National Capital Region as an instrumental variable. These findings contribute to a burgeoning literature on the local aggregate effects of minimum wage increases in developing countries.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Price Effects of Increasing the Minimum Wage: Evidence from Regions in the Philippines

  • 期刊论文

  • 发表日期：

    2026年2月19日

查看全文
  • Michael Batu

摘要

This paper examines the effect of regional minimum wage increases on inflation in the Philippines using monthly regional data and a reduced-form model grounded in a simple general equilibrium framework. The empirical analysis shows that a 10% increase in the regional minimum wage raises regional headline inflation by about 0.4% point contemporaneously, with larger cumulative effects over six and twelve months. Regions and consumption items with higher concentrations of minimum-wage labor drive the observed price responses. To address endogeneity concerns, the study exploits the sequencing of minimum wage announcements led by the National Capital Region as an instrumental variable. These findings contribute to a burgeoning literature on the local aggregate effects of minimum wage increases in developing countries.