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Minimum wage effects in a developing country

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posted on 2010-01-27, 15:29 authored by Sara Lemos
The available minimum wage literature, which is mostly based on US evidence, is not very useful for analyzing developing countries, where the minimum wage affects many more workers and labor institutions and law enforcement differ in important ways. The main contribution of this paper is to present new empirical evidence on minimum wage effects for a key developing country, Brazil. Using a monthly household survey panel from 1982 to 2000 we find evidence of a strong wage compression effect for both the formal and informal sectors. Furthermore, we find no evidence of adverse employment effects in either sector.

History

Publisher

Dept. of Economics, University of Leicester

Available date

2010-01-27

Publisher version

http://www.le.ac.uk/economics/research/discussion/papers2006.html

Book series

Papers in economics;01/2006

Language

en

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