Earnings Inequality and the Minimum Wage: Evidence from Brazil

Niklas Engbom and Christian Moser

No 28831, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We show that a rise in the minimum wage accounts for a large decline in earnings inequality in Brazil since 1994. To this end, we combine rich administrative and survey data with an equilibrium model of the Brazilian labor market. Our results imply that the minimum wage has far-reaching spillover effects on wages higher up in the distribution, accounting for one-third of the 25.9 log point fall in the variance of log earnings in Brazil since 1994. At the same time, the minimum wage’s effects on employment and output are muted by reallocation of workers toward more productive firms.

JEL-codes: E24 E25 E61 E64 J31 J38 (search for similar items in EconPapers)
Date: 2021-05
New Economics Papers: this item is included in nep-lam, nep-lma and nep-mac
Note: EFG
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Citations: View citations in EconPapers (33)

Published as Niklas Engbom & Christian Moser, 2022. "Earnings Inequality and the Minimum Wage: Evidence from Brazil," American Economic Review, vol 112(12), pages 3803-3847.

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Related works:
Journal Article: Earnings Inequality and the Minimum Wage: Evidence from Brazil (2022)
Working Paper: Earnings Inequality and the Minimum Wage: Evidence from Brazil (2021)
Working Paper: Earnings Inequality and the Minimum Wage: Evidence from Brazil (2018)
Working Paper: Earnings Inequality and the Minimum Wage: Evidence from Brazil (2018)
Working Paper: Earnings Inequality and the Minimum Wage: Evidence from Brazil (2017)
Working Paper: Earnings Inequality and the Minimum Wage: Evidence from Brazil (2017)
Working Paper: Earnings Inequality and the Minimum Wage: Evidence from Brazil (2016)
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