Minimum wage violations in Honduras

IZA Journal of Labor & Development

Table 4 Changes in minimum wage violations for covered workers, before and after 2009

	V ₀			V ₁/V ₀
Industry	Pre	Post	Difference	Pre	Post	Difference
Panel A: Urban areas
Agriculture, fishing, and hunting	0.538	0.762	0.224	0.376	0.490	0.115
Mining	0.291	0.614	0.323	0.415	0.512	0.097
Manufacturing	0.333	0.618	0.286	0.275	0.355	0.079
Utilities	0.356	0.589	0.233	0.308	0.274	–0.034
Construction	0.404	0.724	0.321	0.325	0.447	0.122
Retail, hotels, and restaurants	0.343	0.607	0.263	0.279	0.346	0.067
Transport, storage, and communications	0.250	0.497	0.247	0.287	0.332	0.046
Banking, financial, and real estate services	0.268	0.461	0.193	0.231	0.263	0.032
Communal, social, and personal services	0.187	0.404	0.217	0.313	0.361	0.048
Export sector (Maquila)	0.391	0.307	-0.084	0.220	0.222	0.002
Average	0.335	0.552	0.218	0.282	0.359	0.077
Panel B: Rural areas
Agriculture, fishing, and hunting	0.723	0.833	0.111	0.436	0.510	0.074
Mining	0.508	0.616	0.108	0.333	0.399	0.066
Manufacturing	0.404	0.582	0.178	0.293	0.397	0.105
Utilities	0.471	0.692	0.221	0.406	0.354	–0.052
Construction	0.503	0.741	0.238	0.361	0.471	0.110
Retail, hotels, and restaurants	0.461	0.644	0.183	0.333	0.425	0.092
Transport, storage, and communications	0.350	0.580	0.230	0.359	0.421	0.062
Banking, financial, and real estate services	0.457	0.502	0.045	0.254	0.315	0.061
Communal, social, and personal services	0.388	0.597	0.209	0.399	0.457	0.057
Export sector (Maquila)	0.437	0.440	0.003	0.211	0.205	–0.006
Average	0.587	0.727	0.139	0.392	0.469	0.077

Source: Own calculations from pooled EPHPM surveys for 2005–2011
Notes: All statistics are weighted using survey provided expansion factors. Pre refers to 2005–2008 and Post to 2009–2011. Covered workers are defined as private-sector wage earners, following Honduran minimum wage decrees. Estimates are available for industries that have at least 10 observations for each worker type