Mateo, Ernest METHDEV –A51

Sahagun, Aria Multiple/Comparative case study

Valderrama, Cyan

Bibliographic entry:
Rani, U., Besler, P., & Olez, M. (2013). Minimum wage coverage and compliance in developing
countries. Retrieved from http://onlinelibrary.wiley.com/doi/10.1111/j.1564-
913X.2013.00197.x/full

Critique on Rani, Besler, and Olez’s 2013 research entitled Minimum wage coverage and
compliance in developing countries

Through the use of household and labor force survey data from 11 developing countries, the
researchers compute rates of minimum wage compliance for regular/irregular employees under
current legislation and evaluate the average “depth” of violations. Though conformity is negatively
related to the proportion of minimum to median wages, countries with a national minimum wage
specified at a reasonable standard usually attain higher compliance rates than countries with
occupational or industry-based minimum wage systems. Although, better compliance – especially
for women, ethnic groups, and unskilled informal workers – also varies on contextualized yet
extensive minimum wage policies combining union/employer participation, awareness-raising and
credible enforcement.

Strengths of the Research

The research has a number of strengths: the data gathered and how it was presented,
analysis, and how it was written overall. First, the International Labor Organization (ILO), in
coordination with local government institutions, conducted the labor force surveys in all 11
developing countries within the same range of years. Therefore, the data may be considered as
credible, consistent, and accurate. On the other hand, the research had all the necessary data
required such as minimum wage systems, percentages of wage earners covered by minimum wage
legislation, wage distributions, rates of compliance, and ratios of minimum to median wages.
Moreover, the researchers were able to present the data in graphs that could be easily
comprehended by their target audience. They were also able to provide the raw data that was
collected. Labels were used to indicate in the analysis which data graph was used. In addition, the
sampling of the data provided the study with a wide but accurate scope of developing countries.
As a result, the researchers were able to support with evidence all of their arguments, claims, and
conclusion efficiently.

Second, the researchers were able to analyze the data to support their claims and arguments.
They were able to explain and evaluate each of the 11 developing countries’ data in terms of the
different categories. The researchers had an interpretation for every point based on legislations and
labor policies for each specific data of a developing country. They were able to maximize the data
they had. On the other hand, they also discussed about successful strategic frameworks for
compliance with minimum wage legislations. They were able to provide examples and explain
how these frameworks were able to succeed and how it could be recommended for some
developing countries.

Third, the overall writing style of the researchers was detailed and cohesive. They were
able to explain each argument and claim with evidence to support in a detailed manner so as for
the audience to understand. They were able to explain how they went about their methodology and
the methods that they used. The researchers divided the study into 4 sections that enabled the
research to have a smooth flow and transition. Each section was a specific subtopic of the whole
research that had sub-headings. The first two sections were empirical evidence about the extent of
coverage gaps and gaps in compliance. Meanwhile, the third section provided examples of
strategies that have succeeded in compliance rates. While the fourth and last concluded the findings
of the research. Overall, there were no loose sentences nor grammatical errors.

Weaknesses of the Research

Although the research had strong data evidences, it was still not able to maximize the data
gathered to address other areas of the topic such as wage gaps for ethnic groups, women, and
unskilled workers. Moreover, the data was not consistent in the range of years for each developing
country. In addition, the data for ethnic groups for countries such as Costa Rica, Mali, and Mexico
were not available which could have been the cause for a limited discussion on the topic. This
ultimately makes the study inconsistent since the case for ethnic group workers are different from
the regular minimum wage employees.

Another weakness is that the article is lengthy that it could create confusion amongst the
readers. The length of the article could pose a problem for readers who are not economists or
researchers since it tries to cover too many angles of the topic. On the other hand, they also
discussed some legislations of some developing countries vaguely and were unable to expound.
This could also create confusion for readers who are not knowledgeable of legislations, laws, and
policies of some developing countries.

Recommendations and Relevance to the Study

The article is significantly relevant to the study since it could factor in compliance and
strong implementation of minimum wage in the Philippines. It could help the researchers identify
factors that affect minimum wage and minimum wage laborers. This is because it could pose an
effect on the median wage in the country. It could also be another reason for minimum wage
workers to remain in poverty. Lastly, it could provide the researchers strategic frameworks for
recommendation in improving minimum wage implementation and compliance as a tool to reduce
poverty.

The thesis group would suggest that the authors do not factor in ethnic groups if they do
not have complete statistical data to support its claims; also if they are not planning to extensively
discuss the area. This is in order for the research to be consistent. Moreover, the authors should
keep their analysis brief, concise, and straight to the point so as not to confuse the readers and not
try to cover everything. In addition, they should also be able to explain briefly the legislations and
laws of the developing countries. Lastly, the authors should have a consistent focus range of years
to observe and analyze for all developing countries since economic events and occurrences may
have affected these countries differently.