Minimum wage, poverty alleviation income policies, and the relative performance of the Brazilian Northeastern economy

Alexandre Rands Barros () and Diloá Athias ()

Brazilian Journal of Political Economy, 2013, vol. 33, issue 1, 179-199

Abstract: This paper presents the two major hypotheses explaining the relatively higher GDP growth of Northeast, when compared to the one for the whole country. These hypotheses are that governmental transferences towards the poorest and the rises in minimum wages are responsible for such relative performance. They are formally presented theoretically and a method to test their relative role is developed, relying on county data for the period 2000 to 2006. The results indicate that the Bolsa Familia Program had a higher positive impact in the GDP growth rate of the region than the rises in Minimum wage. JEL Classification: R11.

Keywords: minimum wage; transference policies; Northeastern growth (search for similar items in EconPapers)
Date: 2013
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