Compliance with labor laws in developing countries

Bhorat, Haroon; Kanbur, Ravi; Stanwix, Benjamin

doi:10.15185/izawol.80.v2

Cited by 6 publications

(5 citation statements)

References 10 publications

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“…In contrast a worker in a labour market where the noncompliance rate was 50% would receive 61 paise for each rupee increase in the minimum wage, while a worker in high noncompliance market, with noncompliance rates of 70%, would only receive 28 paise for each rupee increase. These results highlight the importance of distinguishing between de jure and de facto regulation (Bhorat et al (2019), Kanbur and Ronconi (2018)).…”

Section: Minimum Wage Effects and Compliancementioning

confidence: 71%

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Minimum Wage Compliance and Household Welfare: An Analysis of Over 1500 Minimum Wages

Mansoor

O’Neill

2020

SSRN Journal

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Section: Minimum Wage Effects and Compliancementioning

confidence: 71%

“…This is consistent with the raw data that showed that in 2007 and 2011 the average depth of noncompliance was lower among casual workers than regular workers. These comparisons illustrate the complex nature of noncompliance in India (Bhorat, H., R. Kanbur and B. Stanwix 2019).…”

Section: Compliancementioning

confidence: 89%

Minimum Wage Compliance and Household Welfare: An Analysis of Over 1500 Minimum Wages

Mansoor

O’Neill

2020

SSRN Journal

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“…Another extensively used way to measure informality in empirical studies is the percentage of workers earning less than the MW [ILO (2016)]. This metric, however, fails to capture the magnitude of the underpayment, workers who earn just below the MW are indistinguishable from workers who seriously violate the MW legislation [Bhorat et al (2019)].…”

Section: Methodsmentioning

confidence: 99%

Is the Minimum Wage Effective in a Context of Informality?

Olarte

2021

RWE

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There is a general trend in the South American region to increase the minimum wage (MW) to reduce poverty and inequality. However, empirical studies are inconclusive with respect to the effect of the MW. This study seeks to contribute to the empirical evidence regarding the impact of this policy by exploring its limitations and possibilities for reducing poverty in Ecuador. Unlike other studies, a measure to capture informality in the labor market is included. Using fixed effect estimation with panel data, I determine the relationship between labor income deciles and variations in the MW, using a proxy for its effectiveness. The results suggest that the MW positively affects the lower income deciles, to a lesser extent the intermediate deciles and with no effect on the higher ones. However, when considering a control for the degree of informality in the labor market, the effect on the lower deciles is mitigated. Therefore, increases in the MW may be a strategy to increase the income of the middle and vulnerable class, but it does not seem to be useful for reducing poverty.

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“…Studies reveal evidence of labor law compliance in many countries. According to Bhorat et al (2019), labor market-specific factors frequently determine whether minimum wage regulations and nonwage conditions of employment are followed. In developing nations, many workers continue to make less money than the minimum wage and are not entitled to required nonwage benefits.…”

Section: Literature Reviewmentioning

confidence: 99%

Quality of work-life situation and effectiveness of labour laws: managerial perspectives

Shrestha,

Parajuli,

Adhikari

2024

IJLMA

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Purpose This paper aims to examine the current quality of work-life (QWL) situation and the effectiveness of labor laws for promoting QWL in the context of Nepalese workplaces. Design/methodology/approach It uses a descriptive-interpretative-qualitative approach to analyze the responses. Information is gathered through discussions with 85 higher- and middle-level managers of large and medium-sized organizations. Findings The majority of Nepalese organizations accept safe and healthy working conditions, social relevance of work-life, social integration in the work organization, and work and total life space as the key aspects of QWL. They have become even more critical as a result of the COVID-19 pandemic. However, they face challenges in providing employees with opportunities for continued growth and security, immediate opportunity to use and develop human capacities, adequate and fair compensation and constitutionalism in the work organization. QWL-related provisions in Labour Act, 2017, play a vital role in promoting the QWL situation. The QWL programs offer many benefits to employees’ private and working lives. The lack of such programs would undoubtedly have negative consequences for Nepalese companies. Compliance with labor laws will promote a better QWL situation at Nepalese workplaces. Research limitations/implications Only managerial perspectives are considered for examining the current situation of QWL and the effectiveness of QWL-related provisions of the Labour Act, 2017. It excludes the views of union leaders. Practical implications This paper indicates that labor laws’ QWL-related provisions are effective. It also provides several policy measures for promoting a better QWL in Nepalese workplaces. Originality/value This study presents QWL-related legal provisions and the actual situation at the workplaces of Nepal. It also presents the key aspects of QWL in the context of Nepal.

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Compliance with labor laws in developing countries

Cited by 6 publications

References 10 publications

Minimum Wage Compliance and Household Welfare: An Analysis of Over 1500 Minimum Wages

Minimum Wage Compliance and Household Welfare: An Analysis of Over 1500 Minimum Wages

Is the Minimum Wage Effective in a Context of Informality?

Quality of work-life situation and effectiveness of labour laws: managerial perspectives

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