The Effects of the Minimum Wage on Wages, Employment and Prices

Sara Lemos

No 1135, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper puts together evidence for the wages, employment and price effects of the minimum wage. This overall picture will help to understand the small employment effects prevalent in the literature in the light of price effects. The data used is an under-explored monthly Brazilian household survey from 1982 to 2000, similar to the US CPS. As the international literature on the minimum wage is scanty on non-US empirical evidence, in particular on developing countries, this paper will also help to extend the current understanding on the effects of the minimum wage in developing countries. This is crucial if the minimum wage is to be used as a policy to help poor people in poor countries.

Keywords: cost shock; price effect; employment effect; wage effect; minimum wage; pass-through; Brazil (search for similar items in EconPapers)
JEL-codes: J38 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2004-05
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Published - published in: Research in Labor Economics, 2007, 26, 397-413

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Working Paper: The Effects of the Minimum Wage on Wages, Employment and Prices (2004)
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