Minimum wage violations in Honduras

IZA Journal of Labor & Development

Table 5 Changes in minimum wage violations for uncovered 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	0.664	0.836	0.172	0.673	0.751	0.078
Mining	0.341	0.773	0.432	0.343	0.427	0.084
Manufacturing	0.493	0.752	0.258	0.481	0.572	0.091
Utilities	0.639	0.628	–0.010	0.700	0.573	–0.127
Construction	0.190	0.559	0.368	0.301	0.387	0.085
Retail, hotels, and restaurants	0.354	0.671	0.316	0.427	0.532	0.105
Transport, storage, and communications	0.239	0.587	0.348	0.325	0.390	0.064
Banking, financial, and real estate services	0.150	0.341	0.191	0.400	0.447	0.047
Communal, social, and personal services	0.442	0.684	0.242	0.436	0.564	0.129
Export sector (Maquila)	0.526	0.508	–0.018	0.463	0.507	0.044
Average	0.378	0.666	0.287	0.444	0.541	0.097
Panel B: Rural areas
Agriculture, fishing, and hunting	0.803	0.870	0.067	0.713	0.747	0.034
Mining	0.751	0.858	0.107	0.397	0.584	0.187
Manufacturing	0.589	0.748	0.159	0.524	0.595	0.071
Utilities	-	-	-	-	-	-
Construction	0.243	0.559	0.315	0.388	0.437	0.049
Retail, hotels, and restaurants	0.553	0.713	0.161	0.527	0.589	0.061
Transport, storage, and communications	0.328	0.535	0.207	0.367	0.475	0.108
Banking, financial, and real estate services	0.425	0.355	–0.071	0.551	0.496	–0.055
Communal, social, and personal services	0.588	0.724	0.136	0.496	0.565	0.069
Export sector (Maquila)	0.761	0.760	–0.001	0.564	0.599	0.035
Average	0.626	0.789	0.163	0.589	0.671	0.082

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. Uncovered workers are defined as self-employed workers, following Honduran minimum wage decrees. Estimates are available for industries that have at least 10 observations for each worker type