The Effect of the Minimum Wage in Latin America's six largest economies

Autores
Ramírez Leira, Lucía; Lombardo, Carlo Ignazio; Gasparini, Leonardo Carlos
Año de publicación
2021
Idioma
inglés
Tipo de recurso
documento de conferencia
Estado
versión publicada
Descripción
Minimum wage (MW) policies are widespread in the developing world and yet their effects are still unclear. In this paper we explore the effect of national MW policies in Latin America’s six largest economies by exploiting the heterogeneity in how binding minimum wages are across local labor markets and over time. We find evidence that the MW has a compression effect on the wage distribution of formal workers. The effect was particularly large during the 2000s, a decade of sustained growth and strong labor markets. In contrast, the effect seems to vanish in the 2010s, a decade of much weaker labor markets. We also find suggestive evidence of a lighthouse effect: the MW seems to have an unequalizing effect also on the wage distribution of informal workers.
Facultad de Ciencias Económicas
Materia
Ciencias Económicas
Minimum Wage
Wages
Labor Markets
Inequality
Informality
Latin America
Nivel de accesibilidad
acceso abierto
Condiciones de uso
http://creativecommons.org/licenses/by-nc-sa/4.0/
Repositorio
SEDICI (UNLP)
Institución
Universidad Nacional de La Plata
OAI Identificador
oai:sedici.unlp.edu.ar:10915/169234

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spelling The Effect of the Minimum Wage in Latin America's six largest economiesRamírez Leira, LucíaLombardo, Carlo IgnazioGasparini, Leonardo CarlosCiencias EconómicasMinimum WageWagesLabor MarketsInequalityInformalityLatin AmericaMinimum wage (MW) policies are widespread in the developing world and yet their effects are still unclear. In this paper we explore the effect of national MW policies in Latin America’s six largest economies by exploiting the heterogeneity in how binding minimum wages are across local labor markets and over time. We find evidence that the MW has a compression effect on the wage distribution of formal workers. The effect was particularly large during the 2000s, a decade of sustained growth and strong labor markets. In contrast, the effect seems to vanish in the 2010s, a decade of much weaker labor markets. We also find suggestive evidence of a lighthouse effect: the MW seems to have an unequalizing effect also on the wage distribution of informal workers.Facultad de Ciencias Económicas2021-11info:eu-repo/semantics/conferenceObjectinfo:eu-repo/semantics/publishedVersionObjeto de conferenciahttp://purl.org/coar/resource_type/c_5794info:ar-repo/semantics/documentoDeConferenciaapplication/pdfhttp://sedici.unlp.edu.ar/handle/10915/169234enginfo:eu-repo/semantics/altIdentifier/url/https://bd.aaep.org.ar/anales/works/works2021/ramirez_2021.pdfinfo:eu-repo/semantics/altIdentifier/issn/1852-0022info:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by-nc-sa/4.0/Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0)reponame:SEDICI (UNLP)instname:Universidad Nacional de La Platainstacron:UNLP2025-09-29T11:43:15Zoai:sedici.unlp.edu.ar:10915/169234Institucionalhttp://sedici.unlp.edu.ar/Universidad públicaNo correspondehttp://sedici.unlp.edu.ar/oai/snrdalira@sedici.unlp.edu.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:13292025-09-29 11:43:16.159SEDICI (UNLP) - Universidad Nacional de La Platafalse
dc.title.none.fl_str_mv The Effect of the Minimum Wage in Latin America's six largest economies
title The Effect of the Minimum Wage in Latin America's six largest economies
spellingShingle The Effect of the Minimum Wage in Latin America's six largest economies
Ramírez Leira, Lucía
Ciencias Económicas
Minimum Wage
Wages
Labor Markets
Inequality
Informality
Latin America
title_short The Effect of the Minimum Wage in Latin America's six largest economies
title_full The Effect of the Minimum Wage in Latin America's six largest economies
title_fullStr The Effect of the Minimum Wage in Latin America's six largest economies
title_full_unstemmed The Effect of the Minimum Wage in Latin America's six largest economies
title_sort The Effect of the Minimum Wage in Latin America's six largest economies
dc.creator.none.fl_str_mv Ramírez Leira, Lucía
Lombardo, Carlo Ignazio
Gasparini, Leonardo Carlos
author Ramírez Leira, Lucía
author_facet Ramírez Leira, Lucía
Lombardo, Carlo Ignazio
Gasparini, Leonardo Carlos
author_role author
author2 Lombardo, Carlo Ignazio
Gasparini, Leonardo Carlos
author2_role author
author
dc.subject.none.fl_str_mv Ciencias Económicas
Minimum Wage
Wages
Labor Markets
Inequality
Informality
Latin America
topic Ciencias Económicas
Minimum Wage
Wages
Labor Markets
Inequality
Informality
Latin America
dc.description.none.fl_txt_mv Minimum wage (MW) policies are widespread in the developing world and yet their effects are still unclear. In this paper we explore the effect of national MW policies in Latin America’s six largest economies by exploiting the heterogeneity in how binding minimum wages are across local labor markets and over time. We find evidence that the MW has a compression effect on the wage distribution of formal workers. The effect was particularly large during the 2000s, a decade of sustained growth and strong labor markets. In contrast, the effect seems to vanish in the 2010s, a decade of much weaker labor markets. We also find suggestive evidence of a lighthouse effect: the MW seems to have an unequalizing effect also on the wage distribution of informal workers.
Facultad de Ciencias Económicas
description Minimum wage (MW) policies are widespread in the developing world and yet their effects are still unclear. In this paper we explore the effect of national MW policies in Latin America’s six largest economies by exploiting the heterogeneity in how binding minimum wages are across local labor markets and over time. We find evidence that the MW has a compression effect on the wage distribution of formal workers. The effect was particularly large during the 2000s, a decade of sustained growth and strong labor markets. In contrast, the effect seems to vanish in the 2010s, a decade of much weaker labor markets. We also find suggestive evidence of a lighthouse effect: the MW seems to have an unequalizing effect also on the wage distribution of informal workers.
publishDate 2021
dc.date.none.fl_str_mv 2021-11
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