Article ID Journal Published Year Pages File Type
972230 Labour Economics 2009 14 Pages PDF
Abstract

The available empirical minimum wage literature, which is mostly based on US evidence, is not very useful for analyzing developing countries, where the minimum wage affects many more workers and labour institutions and law enforcement differ in important ways. The main contribution of this paper is to present new empirical evidence on minimum wage effects for a large developing country, Brazil. Using a monthly household survey panel from 1982 to 2004 I find evidence of a wage compression effect for both the formal and informal sectors. Furthermore, I find no evidence of employment effects in either sector.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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