The unintended effects of a large minimum wage increase on health: Evidence from South Korea.

ABSTRACT: The 2018 minimum wage increase in South Korea was a major policy change that impacted employment and labour productivity, but its effects on health have not yet been explored. The minimum wage was increased by 16.4% in January 2018, marking the largest increase over two decades and a substantial increase by international standards. While this policy change was a promise of the then-new government, the magnitude of its increase was unexpected. Using a difference-in-differences design with data from the 2016 and 2018 Korean Longitudinal Study on Aging, this study focuses on individuals targeted by the minimum wage policy, particularly older adults earning the minimum wage. Unexpectedly, our results indicate a statistically significant decrease in cognitive function within the targeted group,

SUBMITTER: Kim JH 

PROVIDER: S-EPMC11803299 | biostudies-literature | 2025 Jan

REPOSITORIES: biostudies-literature