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

Sara Lemos ()

No 04/10, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

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: minimum wage; wage effect; employment effect; price effect; cost shock; pass-through; Brazil (search for similar items in EconPapers)
JEL-codes: J38 (search for similar items in EconPapers)
Date: 2004-03
New Economics Papers: this item is included in nep-lab
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