Minimum Wage Effects on Wages and Employment: Evidences from Time-Series and Longitudinal Data

IPEA Working Paper No. 849

33 Pages Posted: 21 Jan 2002

Date Written: December 2001

Abstract

This paper reports analysis of minimum wage on Brazilian labor market combining micro longitudinal data and aggregated time-series data. After the analysis of the minimum wage effects on Brazilian wage distribution based on micro data, the effects on employment level and composition (formal X informal) were identified for both, time-series and longitudinal data.

The results show a significant effect of minimum wage on wage distribution. Regarding employment the aggregate effects points towards a decrease in employment level and also in the formal share of those employed. However the magnitudes are not striking. In fact the micro data analysis suggests that these effects vary considerably according to the date of the minimum readjust.

Note: The downloadable document is written in Portuguese.

Keywords: minimum wage, employment, wages

JEL Classification: J21, J31

Suggested Citation

Leite Corseuil, Carlos Henrique and Carneiro, Francisco Galrao, Minimum Wage Effects on Wages and Employment: Evidences from Time-Series and Longitudinal Data (December 2001). IPEA Working Paper No. 849, Available at SSRN: https://ssrn.com/abstract=297226 or http://dx.doi.org/10.2139/ssrn.297226

Carlos Henrique Leite Corseuil (Contact Author)

Institute of Applied Economic Research (IPEA) ( email )

Av. Presidente Antonio Carlos 51
14 andar, Castelo
RJ 20020-010 Rio de Janeiro
Brazil
+55 21 3804-8000 (Phone)
+55 21 2240-1920 (Fax)

Francisco Galrao Carneiro

The World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

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