Assessing the Distributive Effects of Minimum Wage

Fernando Borraz and Nicolás González Pampillón ()
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Nicolás González Pampillón: Universitat de Barcelona
Authors registered in the RePEc Author Service: Nicolás González-Pampillón ()

No 2017002, Documentos de trabajo from Banco Central del Uruguay

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)
Pages: 45 pages
Date: 2017
New Economics Papers: this item is included in nep-dev and nep-lam
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Citations: View citations in EconPapers (13)

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Related works:
Journal Article: Assessing the distributive effects of minimum wage (2017)
Working Paper: Assessing the Distributive Effects of Minimum Wage (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:bku:doctra:2017002

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