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The Effects of the Minimum Wage in the Formal and Informal Sectors in Brazil

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dc.creator Lemos, Sara
dc.date 2004
dc.date.accessioned 2013-10-16T07:10:00Z
dc.date.available 2013-10-16T07:10:00Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/20324
dc.identifier ppn:384020372
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/20324
dc.description The minimum wage literature is very limited on empirical evidence for developing countries. This already limited literature is even more limited on the effects of the minimum wage in the informal sector, where most of the poor are. Extending the understanding of minimum wage effects both in developing countries and in particular in the informal sector is crucial if the minimum wage is to be used as a policy to help poor people in poor countries. This paper estimates wage and employment effects, accounting for sorting into the formal and informal sectors. The data used is a monthly Brazilian household survey from 1982 to 2000 at individual and regional levels. The formal and informal sectors employment effects were both found to be negative, consistent with the presence of a large spike, substantial spillover effects, and the associated compression effect in the wage distribution of both sectors. This suggests a downwards sloping labour demand curve in both sectors, challenging the standard Two Sectors Model as inadequate to explain the effect of the minimum wage on the formal and informal sectors in Brazil and in Latin America more generally.
dc.language eng
dc.publisher
dc.relation IZA Discussion paper series 1089
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject J38
dc.subject ddc:330
dc.subject minimum wage
dc.subject wage effect
dc.subject employment effect
dc.subject informal sector
dc.subject Brazil
dc.subject Mindestlohn
dc.subject Lohn
dc.subject Beschäftigungseffekt
dc.subject Informeller Sektor
dc.subject Schätzung
dc.subject Brasilien
dc.title The Effects of the Minimum Wage in the Formal and Informal Sectors in Brazil
dc.type doc-type:workingPaper


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