Assessing the Distributive Effects of Minimum Wage

Fernando Borraz and González Pampillón

No 10, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: This paper analyzes the role of Uruguay’s sharp minimum wage increases after 2004 amidst the country’s slight wage inequality decrease. We found that the minimum wage increase has contributed to the reduction of wage inequality for formal workers mainly. However, we also found a negative impact on employment outside the capital city, Montevideo, and observed a reduction in working hours. These results raise doubts about the effectiveness of minimum wage as a redistribution instrument in developing countries.

Keywords: minimum wage; wage inequality; instrumental variables; employment effect; difference in difference (search for similar items in EconPapers)
JEL-codes: J20 J31 J38 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-dev and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/154747/1/GLO_DP_0010.pdf (application/pdf)

Related works:
Journal Article: Assessing the distributive effects of minimum wage (2017)
Working Paper: Assessing the Distributive Effects of Minimum Wage (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:10

Access Statistics for this paper

More papers in GLO Discussion Paper Series from Global Labor Organization (GLO) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics (econstor@zbw-workspace.eu).