Minimum wage raises contribute to rural-urban inequality in Kenya

Kenya is experiencing high levels of rural-urban migration that lead to increased unemployment and poverty in urban areas. A team of local PEP researchers set out to evaluate how increases in minimum wages affect the Kenyan labor market, economy, and household incomes. The research team’s findings indicate that minimum wage increases often have a negative effect on poorer rural households but can slightly benefit urban households. The team’s findings suggest this effect contributes to increased rural-urban inequality in the country.
Find out more about the research methods, findings and policy recommendations in the following PEP publications: