ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Does Minimum Wage Affect Informal Jobs across States in India?

The presence of a large informal sector as the mainstay of semi-skilled and unskilled workers raises questions on how the adoption of minimum wage in the formal sector could affect job opportunities. Using NSSO data on unorganised employment in non-directory manufacturing enterprises across 19 major states in India between 1989 and 2011 supported by time series data for minimum wage, net state domestic product, school enrolment, etc, it is found that the minimum wage has a positive impact on NDME jobs.

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