Do Minimum Wages Increase Female Employment? Evidence From a Meta‐Analysis

ABSTRACT One of the purposes of minimum wage legislation is to protect women workers. However, the impact of minimum wage on female employment has been controversial. We perform a meta‐analysis to test the policy effect. After correcting for publication bias using the overall sample, the effect is positive, indicating that minimum wages actually increase female employment. We use 32 moderators as potential explanatory variables to explain the heterogeneity of the literature and find that it stems from the data characteristics and methods used in econometric estimates. In addition, education plays an important role in regulating the female employment effect of minimum wages. Furthermore, we find that the minimum wage results in an increase in female employment in developing countries, while developed countries do not benefit from the minimum wage system. This could be related to differences in industrial structure, social security coverage, and informal employment rate in the two types of countries. Our results suggest that minimum wages may be an effective policy for women who are more likely to engage in minimum wage work.