Minimum wage effects. Evidence for domestic workers in Uruguay by using a density discontinuity approach

In this paper we estimate the impact of the minimum wage in the domestic work sector over wages, unemployment, and formal-informal sector mobility for women in Uruguay. To achieve the objective we apply a dual-economy density discontinuity design developed by Jales (2017) using National Household Survey cross-sectional data for the period 2006 – 2016.  We find significate effects of the MW over labour outcomes. Almost 20% of women increases their wages to reach MW with little negative effects on employment in the domestic sector (3%). We also find undesired effect over formality, which seem to be offset by others labour policies implemented such as inspections and awareness campaigns. The mail contribution of this paper is to generate new empirical evidence on minimum wage effects by using a recent and novel identification strategy with several advantages in the context of developing countries. Furthermore, this study contributes to the improvement of labour policies based on evidence, both for the Uruguayan case and other Latin American countries. 

 

Tipo de documento: Propuesta de Investigación
Autoras: Alma Espino, Soledad Salvador, Karina Colombo, Sharon Katzkowicz, Gabriela Pedetti, Martina Querejeta
Año: 2016
Edición: Centro Interdisciplinario de Estudios sobre el Desarrollo-Uruguay (Ciedur), Partnership for Economic Policy (PEP), International Development Research Center (IDRC – CRDI), UK Aid Direct (UKAID)

 

 Informal employment and labour market policies. The case of domestic workers in Uruguay

Uruguay’s domestic workers boosted by minimum wage policy

This brief summarizes outcomes from PMMA-20102 supported under the PAGE II initiative (2016-2020). To find out more about the research methods and findings, read the full paper, published as part of the PEP working paper series.

PAGE is a global research and capacity-building initiative for Policy Analysis on Growth and Employment in developing countries. PAGE is supported by the Department for International Development (DfID) of the United Kingdom (or UK Aid) and the International Development Research Centre (IDRC) of Canada.

The views and opinions expressed in this publication are those of the authors and do not necessarily reflect those of PEP.

 

Tipo de documento: Investigación
Autoras: Alma Espino, Soledad Salvador, Karina Colombo, Sharon Katzkowicz, Gabriela Pedetti y Martina Querejeta
Año: 2018
Edición: Centro Interdisciplinario de Estudios sobre el Desarrollo-Uruguay (Ciedur), Partnership for Economic Policy (PEP)

 

Uruguay’s domestic workers boosted by minimum wage policy

Informal employment and labour market policies. The case of domestic workers in Uruguay.

In recent decades there has been a systematic increase in the participation of women in the labour market, however women have been largely incorporated in occupations with unfavorable working conditions.

The high incidence of precarious employment among women has been associated with the need to reconcile paid and unpaid work as well as with the persistence of occupational segregation. In this sense, the domestic and care work sector concentrates 14.4% of employed women, which can be partially explained by women’s responsibilities as a product of the traditional sexual division of labour. Therefore, given the high representation of this sector among female employment, it has a crucial role in improving working conditions among women and in reducing global gender gaps in wages and informality. In this context, Uruguay has been a pioneer in the implementation of labour regulation for the domestic work sector.

In this paper we study the effects of these recent policies in the domestic work sector on informality, employment and wages through a quasi-experimental methodology: difference-inBefore you begin.

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Evidence in this research will contribute to the understanding of effects of public policies by analyzing if labour regulation at the domestic work sector has materialized into effective and substantial improvements in working conditions, so as to continue making progress towards greater equality between men and women in the Uruguayan labour market.

 

Tipo de documento: Propuesta de Investigación
Autoras: Alma Espino, Soledad Salvador, Karina Colombo, Sharon Katzkowicz, Gabriela Pedetti, Martina Querejeta
Año: 2016
Edición: Centro Interdisciplinario de Estudios sobre el Desarrollo-Uruguay (Ciedur), Partnership for Economic Policy (PEP), International Development Research Center (IDRC – CRDI), UK Aid Direct (UKAID)

 

 Informal employment and labour market policies. The case of domestic workers in Uruguay

Conversatorio De Trabajadoras Domésticas

El 14 de noviembre de 2018 realizamos el Conversatorio «Trabajadoras domésticas en la Región: Lecciones aprendidas y Políticas a futuro» en conjunto con el Ministerio de Trabajo y Seguridad Social, la Comisión Tripartita para la Igualdad de Oportunidades y Trato en el Empleo, BPS, PNUD-Uruguay y con el apoyo de PEP.

Fue una jornada de reflexión compartida entre actores de gobierno, sociedad civil, sindicato, sector empresarial y academia que permitió realizar una síntesis de los grandes logros alcanzados en el sector del trabajo doméstico pero también poner el foco en los desafíos a futuro.

Entre los principales mensajes de la jornada destacamos:

  • Evaluación muy positiva del proceso de implementación de la Ley de trabajo doméstico y el grado de cumplimiento, pero siendo enfáticas en cuidar lo alcanzado.
  • Fortalecer la fiscalización del trabajo doméstico atendiendo a las diferencias en el cumplimiento con la normativa entre Montevideo e Interior y, en especial, a las ciudades de frontera donde la problemática de la informalidad presenta otros desafíos.
  • Fortalecer las capacidades de los actores sociales que participan de la negociación colectiva dadas las particularidades del sector.
  • Quedó planteada la generación de un taller de trabajo en 2019 donde intercambiar más en profundidad los resultados de las investigaciones entre la academia y el sindicato.