Minimum Wages and Intergenerational Health

Abstract

Most minimum wage (MW) research focuses on wage and employment impacts in high-income countries. Little is known about broader impacts, including on parental and child health in low- and middle- income countries (LMICs) where most people affected by MWs live. This study studies MW effects on employment, earnings, parental health and child health in Indonesia, the third most-populous LMIC. Results include: MWs improve men’s earnings, parental hemoglobin, and child height-for- age and reduce pregnancy complications. This study highlights nuanced but positive roles MWs may play in improving parental and child health, despite not directly affecting women’s earnings and labor supplies.