Minimum Wage and Job Mobility
Nikita Cespedes Reynaga () and
Alan Sanchez ()
No 2013-012, Working Papers from Banco Central de Reserva del Perú
We study the effects of the minimum wage in over employment and income by considering a monthly database that captures seven minimum wage changes registered between 2002 and 2011. We estimate that about 1 million workers have an income by main occupation in the neighbourhood of the minimum wage. We found that the minimum wage-income elasticity is statistically significant; the evidence also suggests that those who receive low incomes and those working in small businesses are the most affected by increases in the minimum wage. Employment effects are monotonically decreasing in absolute terms by firm size: moderate in big firms and higher in small firms. Results are robust when assessing the job-to-job transitions. Finally, we present evidence that supports the hypothesis that the minimum wage in Peru is correlated with income. The movement of income distribution in the context of changes in the minimum wage as well as the results provided by a model that captures the drivers of income justify this result.
Keywords: Minimum wage; Labor mobility; Income dynamics; Informality (search for similar items in EconPapers)
JEL-codes: E24 E26 J20 J21 J61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-iue, nep-lab, nep-lam, nep-lma, nep-ltv and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed
Downloads: (external link)
https://www.bcrp.gob.pe/docs/Publicaciones/Documen ... -trabajo-12-2013.pdf Application/pdf
Our link check indicates that this URL is bad, the error code is: 403 Forbidden
Working Paper: Minimum wage and job mobility (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:rbp:wpaper:2013-012
Access Statistics for this paper
More papers in Working Papers from Banco Central de Reserva del Perú Contact information at EDIRC.
Bibliographic data for series maintained by Research Unit ().