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The returns to occupations: the role of minimum wage and gender in Nigeria

The returns to occupations: the role of minimum wage and gender in Nigeria
The returns to occupations: the role of minimum wage and gender in Nigeria
This paper examines the economic returns to being employers, paid workers and self-employed own account individuals in a lower middle income economy using quantile regressions while accounting for selection using Heckman selection models. The results suggest that although the majority of employers experience labour wage premiums throughout the income distribution, self-employed own account individuals experience a wage penalty at the lower quantiles of the income distribution where paid workers reap benefits from minimum wage guarantees, suggesting that minimum wage legislations may push individuals with low skills into self- employment. Furthermore, female employers and paid workers tend to be relatively well educated implying that education enables females to escape the job glass ceiling although males typically earn significantly more than females.
2452-2929
75-86
Olarewaju, Tolu
447d7797-342c-4ae5-8098-04c0c1aa8e58
Mickiewicz, Tomasz
101b0655-fbca-4e9a-ba63-afbfbb9d58c9
Tamvada, Jagannadha Pawan
767d0374-3cc1-4822-adb6-f22b7a1f6531
Olarewaju, Tolu
447d7797-342c-4ae5-8098-04c0c1aa8e58
Mickiewicz, Tomasz
101b0655-fbca-4e9a-ba63-afbfbb9d58c9
Tamvada, Jagannadha Pawan
767d0374-3cc1-4822-adb6-f22b7a1f6531

Olarewaju, Tolu, Mickiewicz, Tomasz and Tamvada, Jagannadha Pawan (2019) The returns to occupations: the role of minimum wage and gender in Nigeria. World Development Perspectives, 13, 75-86.

Record type: Article

Abstract

This paper examines the economic returns to being employers, paid workers and self-employed own account individuals in a lower middle income economy using quantile regressions while accounting for selection using Heckman selection models. The results suggest that although the majority of employers experience labour wage premiums throughout the income distribution, self-employed own account individuals experience a wage penalty at the lower quantiles of the income distribution where paid workers reap benefits from minimum wage guarantees, suggesting that minimum wage legislations may push individuals with low skills into self- employment. Furthermore, female employers and paid workers tend to be relatively well educated implying that education enables females to escape the job glass ceiling although males typically earn significantly more than females.

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Accepted/In Press date: 2 February 2019
Published date: 2019

Identifiers

Local EPrints ID: 428171
URI: http://eprints.soton.ac.uk/id/eprint/428171
ISSN: 2452-2929
PURE UUID: bf9815c5-ff3b-4cbb-b34e-52cdd0c8fd3f

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Date deposited: 13 Feb 2019 17:30
Last modified: 29 Jan 2020 17:00

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