Policy Briefs

Minimum and Living Wages in Jordan and Tunisia: Implications for Social Protection Floors

No.

PB 89

Publisher

ERF

Date

August, 2022

Topic

J. Labor and Demographic Economics

In a nutshell
  • While the majority of workers in Jordan and Tunisia earn at least minimum and poverty wages, only a minority of workers earn a living wage.
  • Whether workers meet wage benchmarks depends on the characteristics of their workplaces, their specific work (especially job formality and skills required), and workers’ demographics.
  • Providing universal basic income to the level of even minimum or poverty wages would be, fiscally, extremely difficult. Transfers that target the gaps between minimum or poverty wages and current wages to help the working poor would be more feasible.
  • There are complex tradeoffs in increasing the minimum wage or its enforcement. However, improving the design of minimum wages, for instance so that they are simpler and annual adjustments occur based on inflation, could help workers meet their basic needs.
Minimum and Living Wages in Jordan and Tunisia: Implications for Social Protection Floors

Authors

Caroline Krafft

Associate Professor, Humphrey School of Public Affairs,...

Minimum and Living Wages in Jordan and Tunisia: Implications for Social Protection Floors

Research Associates

Cyrine Hannafi

Post-Doctoral Researcher, University Paris-Est Créteil