The impact of minimum wage legislation on employment in kenyan manufacturing sector 1970-2001
Abstract
The impact of minimum wages on the labor market has been a recurrent and
controversial issue in the theoretical and empirical literature. Most of the studies
have focused on industrialized countries and the few on developing economies
are in Latin American countries. By using secondary time series data collected
from various government and statistical publications, this study attempts to
estimate the impact of minimum wage on employment in the Kenyan
manufacturing sector for the period 1970 - 2001. The results suggest a relatively
mild unemployment effects in the short-run but no significant impact in the long run. The results revealed positive employment effects of growth in national
output, but a negative employment effect in the sector following increases in
imports.
Sponsorhip
The University of NairobiPublisher
Department of Economics