The impact of minimum wages on informal and formal labor market outcomes: evidence from Indonesia

IZA Journal of Labor & Development

Table 2 Monthly minimum wage and real wages

	1997	2000	2007
mean minimum wage
nominal	131,346 Rp	218,774 Rp	667,767 Rp
real	326,737 Rp	272,308 Rp	444,745 Rp
mean real wage
all	505,133 Rp	500,415 Rp	593,130 Rp
formal	536,345 Rp	503,143 Rp	685,914 Rp
informal	449,206 Rp	495,902 Rp	497,795 Rp
mean real wage in certain deciles
top	1,712,152 Rp	1,671,412 Rp	2,010,690 Rp
bottom	62,731 Rp	66,088 Rp	83,945 Rp
share below minimum wage
all	46.5%	36.7%	43.7%
formal	40.6%	33.1%	32.2%
informal	56.9%	42.5%	55.5%

Note: The subpopulation of interest is full-time workers between 15 and 60 years old who reported positive income. In each survey year; top and bottom percentile of wages are excluded as outliers. The mean of the minimum wage is a simple average over provinces in the sample, all other statistics are weighted using cross-sectional weights of the respective survey year