Final technical report / The Impact of Minimum Wage on Labour Markets in Central America : A Comparative Analysis of Costa Rica, El Salvador and Nicaragua, 1 January 2008 – 30 June 2010

Paid employees in small firms and in domestic service (associated with informality) earn less than the legal minimum wage when compared to paid employees in large firms or in the public (or formal) sector. This report outlines project research and outputs. Results suggest that in all three countries minimum wages affect only a sub-set of workers, mostly full-time formal sector workers in large firms who earn within or near the middle of the distribution of wages. In terms of policy: minimum wages will help low-paid workers, and decrease inequality and poverty, where programs support low-paid workers who lose their jobs