Coverage and enforcement of legal minimum wages are equally important. In developing countries many women in the informal economy are not legally covered by minimum wages. However, minimum wage legislation can still play a positive role:first there is some evidence that minimum wages in the formal sector improve wage levels in the informal sector too, known as a "lighthouse effect"” and second, the minimum wage sets a standard for pressure groups and trade unions to aim at when pressingfor improved conditions for informal workers in a subcontracting chain.