O Esgotamento do Papel do Salário Mínimo Como Mecanismo de Combate à Pobreza Extrema

Fabio Giambiagi and Samuel Franco

No 1290, Discussion Papers from Instituto de Pesquisa Econômica Aplicada - IPEA

Abstract: This paper analyses the evolution of the minimum wage in Brazil after the stabilization of the Real Plan. It is shown that between 1994 and 2007, the variable had an accumulated real increase of more than 100%. Consequently, its value has advanced in the degree of income and it is estimated that in 2007 it should have reached 41% of the average earning. The article points to the end of the effectiveness of the policy of real increases of minimum wage as a means to reduce the extreme poverty. Based on this, it is suggested to maintain the real value of the minimum wage in the next decade and to concentrate the additional public expenditures in better focused and with higher social return policies.

Pages: 29 pages
Date: 2007-07
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ipe:ipetds:1290

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