Arbeitspapier

Estimating the effects of the minimum wage in a developing country: A density discontinuity design approach

This paper proposes a framework to identify the effects of the mini- mum wage on the joint distribution of sector and wage in a developing country. I show how the discontinuity of the wage distribution around the minimum wage identifies the extent of non-compliance with the minimum wage policy, and how the conditional probability of sector given wage recovers the relationship between latent sector and wages. I apply the method in the "PNAD", a nationwide representative Brazilian cross-sectional dataset for the years 2001 to 2009. The results indicate that the size of the informal sector is increased by around 39% compared to what would prevail in the absence of the minimum wage, an effect attributable to (i) unemployment effects of the minimum wage on the formal sector, (ii) movements of workers from the formal to the informal sector as a response to the policy.

Sprache
Englisch

Erschienen in
Series: GLO Discussion Paper ; No. 54

Klassifikation
Wirtschaft
Labor and Demographic Economics: General
Wage Level and Structure; Wage Differentials
Wages, Compensation, and Labor Costs: General
Thema
Minimum wage
informality
density discontinuity
unemployment

Ereignis
Geistige Schöpfung
(wer)
Jales, Hugo
Ereignis
Veröffentlichung
(wer)
Global Labor Organization (GLO)
(wo)
Maastricht
(wann)
2017

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Jales, Hugo
  • Global Labor Organization (GLO)

Entstanden

  • 2017

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