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Minimum wage effects in a developing country

By Sara Lemos


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

Topics: minimum wage, labor costs, employment, informal sector, Brazil
Publisher: Dept. of Economics, University of Leicester
Year: 2006
OAI identifier:

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