Minimum Wage Effects in a Developing Country

Sara Lemos

No 06/1, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: The available 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 labor 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 key developing country, Brazil. Using a monthly household survey panel from 1982 to 2000 we find evidence of a strong wage compression effect for both the formal and informal sectors. Furthermore, we find no evidence of adverse employment effects in either sector.

Keywords: minimum wage; labor costs; employment; informal sector; Brazil (search for similar items in EconPapers)
JEL-codes: J38 (search for similar items in EconPapers)
Date: 2006-01
New Economics Papers: this item is included in nep-lab and nep-lam
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Citations: View citations in EconPapers (21)

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Journal Article: Minimum wage effects in a developing country (2009)
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