Logo
Munich Personal RePEc Archive

Do Minimum Wage Increases Cause Inflation? Evidence from Vietnam

Nguyen, Cuong (2011): Do Minimum Wage Increases Cause Inflation? Evidence from Vietnam. Published in: ASEAN Economic Bulletin , Vol. 28, No. 3 (15 December 2011)

[thumbnail of MPRA_paper_36750.pdf]
Preview
PDF
MPRA_paper_36750.pdf

Download (271kB) | Preview

Abstract

It is often argued that minimum wage increases can lead to increased inflation. This paper examines the impact of minimum wage increases on inflation in Vietnam during the 1994-2008 period. Inflation is measured by a monthly overall Consumer Price Index (CPI) and a monthly food CPI. It is found that the minimum wage increases did not increase inflation. Since the minimum wage increases often took place one or two months before the Vietnamese New Year festivals, observed increases in monthly inflation after the minimum wage increases were caused by increased consumption demand during the New Year festivals, not by the minimum wage increases.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.