Conditions of Work and Employment Series No. 62

What Does the Minimum Wage Do in Developing Countries? A Review of Studies and Methodologies

This review focuses on issues of methodology in minimum wage research, with particular attention to measures of outcomes and of the minimum wage, and to empirical methods. We begin with an overview of measures and methods, followed with a discussion of issues of identification, of accuracy in hypothesis testing, and of distinctions between static and dynamic models. The second section of the paper reviews research on the minimum wage in developing countries with respect to measures and methodology since 2000.