Minimum and Living Wages in Jordan and Tunisia

Countries around the world are working to develop social protection floors to help reduce poverty. Ensuring workers can earn adequate wages is an important component of social protection floors. In this paper, we explore who receives minimum, poverty, median, and living wages in Jordan, comparing 2010 and 2016, and in Tunisia in 2014. We demonstrate that while the majority of workers do earn at least minimum and poverty wages, only a minority of workers earn a living wage. The chances of earning minimum, poverty, median, and living wages depend on the characteristics of workplaces, specific work characteristics (especially job formality and skills required), and the demographic characteristics of workers. While results are consistent with wages reflecting, in part, workers' productivity, they may also reflect rents, efficiency wages, and for minimum wages issues with enforceability and policy design. These findings highlight which workers are vulnerable to low earnings and where greater enforcement or redesign of minimum wage legislation might be needed.