The minimum wage is not just a measure of income, but it can also be a factor in the job market. In this article, we will look at the impact of the Honduras minimum wage on employment and disemployment. Also, we will discuss the elasticity of the minimum wage in the country. We will then conclude our discussion by examining the implications for the country of raising the minimum wage.
Violence affecting women in Honduras exceeds the combined rate of male and female homicides in El Salvador and Honduras
Honduras minimum wage is $7,915.00. 2022 – Range of minimum wages from 5,681.73 Honduran lempiras per month (22.44 lempiras per hour) to 8,803.70 lempiras per month (36.68 lempiras per hour.)
Honduras has one of the highest rates of femicide in the world. In a country with a poverty rate of over 50 percent, women are often left vulnerable to violence. Femicide is a phenomenon that afflicts all across Latin America.
Gender-based violence occurs most often within domestic relationships. Women are often abused by their partners, who are often gang members. Violence also affects sexual and reproductive health. It also drives desperate migrants to the southern border.
Femicide in Honduras is not a single event, but an extensive system of actions. As a result, many cases go unreported.
The government’s approach to addressing femicide has been inconsistent. It has often failed to provide adequate protection for women, LGBTQ+ persons, and children.
Although the country has made some legislative progress in the past decade, solutions have been limited by structural flaws. These include insufficient funds for implementation and widespread cultural norms that condone violence against women.
Employment elasticity of minimum wages in the country
Minimum wages in Honduras vary greatly. The government sets minimum wage levels based on industry type and firm size. This can affect employment and average wages. However, research on the impacts of minimum wages in Honduras is still incomplete.
Most studies find little to no impact on employment. A handful of studies, however, show significant negative effects. These results are complicated by the absence of reliable data and by the quality of available data. In this chapter, we attempt to fill this gap. Section 2 reviews the literature on the effect of minimum wages in developing countries. We also provide our own estimate of the effect of minimum wages in Honduras.
To determine the degree of non-compliance, we use a cross-sectional approach. Our aim is to explore the heterogeneity of minimum wage violations across industries and locations.
We examine four key types of workers. Urban covered employees, self-employed workers, rural covered workers, and rural uncovered workers. Each of these groups has its own unique coverage status.
Disemployment effects of minimum wages in the country
The effects of minimum wages on employment and disemployment have been studied in a variety of countries. In Honduras, there has been little empirical research on the effects of the policy. However, the EPHPM surveys collect information on individual-level data on employment and wage earnings. These measures provide information on more than 150 workers, and are often used to quantify the minimum wage’s effects.
This study uses a combination of cross-sectional and time-series data to explore the effects of the Honduran minimum wage. It provides evidence that the impact of a minimum wage increase is more pronounced in the urban covered sector than the rural uncovered sector.
Urban covered employees are mainly employed in retail and manufacturing. Their average wages exceed the mandated minimum wage. On the other hand, rural covered employees are predominantly agricultural. They are legally covered but earn slightly less than the minimum.
Honduras is one of the poorest countries in Latin America. Moreover, the country has a complicated minimum wage structure. While it covers certain categories of workers, it does not cover the self-employed.
Impacts of minimum wage hikes in the countries under review
The impacts of minimum wage hikes in the countries under review differ by region. They also vary in terms of the industries involved and the employment affected. Several studies suggest that higher minimum wages have a positive impact on poverty. But others find that they are negative.
There are also issues related to the effects of minimum wages on the informal sector. In these cases, some workers may lose their jobs. Others may withdraw from the labor market. However, in most countries, the effect of the minimum wage on employment is very small.
Some studies have shown that higher minimum wages increase the earnings of a household member. Nevertheless, other studies have found that the increases have negative impacts on the incomes of other household members.
Many countries have minimum wages that are higher than the average wage in the country. For example, the Honduran minimum wage is US$1.26 in 2012, compared to US$0.70 in 2005.
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