1GzuFGC

while the rest have multiple minimum wages thatare set by industry or occupation. 171 Fears thatminimum wages might dampen employmentcreation have largely proven to be unfounded. 172Instead, by increasing the incomes of the poorestworkers, minimum wages can help to supportaggregate demand, thereby stimulating investmentand creating stronger economies. 173Whether the benefits of minimum wages are realizeddepends on the extent of compliance, which varieswidely across countries. Uniform minimum wagesare generally easier to enforce, but in all cases clearinformation for employers and workers, rigorouslabour inspection and sanctions are needed. 174 Thelevel of minimum wages should also be regularlyreviewed to ensure that wages increase at least in linewith inflation so that they retain their real value.In some cases, minimum wage legislation coversinformal employment, where the majority of womenworkers are concentrated. Brazil, Costa Rica, Mexicoand Peru have minimum wage legislation for allworkers, irrespective of the sector or the status ofthe enterprises that employ them. 175 Chile, Portugaland Trinidad and Tobago, are among the countriesthat have recently extended national minimumwages to domestic workers who are often informallyemployed. 176In South Africa, where 15 per cent of working womenare paid domestic workers, 177 a 2002 law establisheda minimum wage for domestic workers andmandated an 8 per cent wage increase for that year.The combined effect of these measures, evaluated16 months after their introduction, was a 20 per centincrease in the wages of domestic workers. 178 Even incountries where informal workers are not covered byminimum wage legislation, they are able to use it as away to negotiate better pay (the so-called ‘lighthouseeffect’). In one study, average earnings of informalworkers increased in 8 out of 11 countries analysedfollowing the introduction of minimum wages—forexample, by 15 per cent in Mali and by 7 per cent inPeru. 179In developing countries with high seasonalunemployment peaks, employment guaranteeprogrammes can help raise wage levels byguaranteeing a certain amount of work at a set rateof pay, so that poor women and men are not forcedto take work under exploitative conditions (seeChapter 3).Valuing paid care workPaid care work, including domestic work, childcare,early childhood education, teaching, nursing andsocial work, are highly feminized occupations.Despite widespread acceptance of the essentialrole of care work, the skills required for it areoften devalued, contributing to women’s overrepresentationamong low-paid workers and thepersistence of gender pay gaps. 180A recent study of 12 developed and developingcountries finds that paid care work often entailsa ‘wage penalty’, meaning that care workers arenot adequately compensated for their skills andexperience in comparison to other workers. 181 Incommon with other ‘public goods’, caregivingtends to be undervalued and underpaid by themarket. 182 Those requiring care such as children,the elderly, sick people or those with disabilitiesare often least able to afford to pay for the truecosts of quality care services. Women, as themajority of care providers, end up subsidizingthese costs through their underpaid labour.Legal action can be taken to tackle the issueof how to properly value paid care work (seeBox 2.7). 183 However, it should not be left to thecourts to take action in this area. The same 12country study found that the undervaluation ofpaid care work is not inevitable and depends onthe policy context. In countries with low levels ofincome inequality, high levels of union densityand generous public spending on care, paid careworkers do not suffer a pay penalty. 184 Publicpolicies are therefore needed to ensure that careproviders are properly remunerated for theirwork.Equally important is adequate regulation of carework and training for workers, to maintain andupgrade their skills on a regular basis. Thesemeasures also support the recruitment and