Does the minimum wage affect wage inequality?
- Autores
- Lombardo, Carlo Ignazio; Ramírez-Leira, Lucía; Gasparini, Leonardo Carlos
- Año de publicación
- 2022
- Idioma
- inglés
- Tipo de recurso
- documento de trabajo
- Estado
- versión enviada
- 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 the bite of the national minimum wage 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 equalizing effect also on the wage distribution of informal workers.
Centro de Estudios Distributivos, Laborales y Sociales - 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/4.0/
- Repositorio
.jpg)
- Institución
- Universidad Nacional de La Plata
- OAI Identificador
- oai:sedici.unlp.edu.ar:10915/141513
Ver los metadatos del registro completo
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Does the minimum wage affect wage inequality?Lombardo, Carlo IgnazioRamírez-Leira, LucíaGasparini, 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 the bite of the national minimum wage 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 equalizing effect also on the wage distribution of informal workers.Centro de Estudios Distributivos, Laborales y Sociales2022-09info:eu-repo/semantics/workingPaperinfo:eu-repo/semantics/submittedVersionDocumento de trabajohttp://purl.org/coar/resource_type/c_8042info:ar-repo/semantics/documentoDeTrabajoapplication/pdfhttp://sedici.unlp.edu.ar/handle/10915/141513enginfo:eu-repo/semantics/altIdentifier/url/https://www.cedlas.econo.unlp.edu.ar/wp/wp-content/uploads/doc_cedlas302.pdf?dl=0info:eu-repo/semantics/altIdentifier/issn/1853-0168info:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by/4.0/Creative Commons Attribution 4.0 International (CC BY 4.0)reponame:SEDICI (UNLP)instname:Universidad Nacional de La Platainstacron:UNLP2025-09-29T11:35:54Zoai:sedici.unlp.edu.ar:10915/141513Institucionalhttp://sedici.unlp.edu.ar/Universidad públicaNo correspondehttp://sedici.unlp.edu.ar/oai/snrdalira@sedici.unlp.edu.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:13292025-09-29 11:35:54.798SEDICI (UNLP) - Universidad Nacional de La Platafalse |
| dc.title.none.fl_str_mv |
Does the minimum wage affect wage inequality? |
| title |
Does the minimum wage affect wage inequality? |
| spellingShingle |
Does the minimum wage affect wage inequality? Lombardo, Carlo Ignazio Ciencias Económicas Minimum Wage Wages Labor Markets Inequality Informality Latin America |
| title_short |
Does the minimum wage affect wage inequality? |
| title_full |
Does the minimum wage affect wage inequality? |
| title_fullStr |
Does the minimum wage affect wage inequality? |
| title_full_unstemmed |
Does the minimum wage affect wage inequality? |
| title_sort |
Does the minimum wage affect wage inequality? |
| dc.creator.none.fl_str_mv |
Lombardo, Carlo Ignazio Ramírez-Leira, Lucía Gasparini, Leonardo Carlos |
| author |
Lombardo, Carlo Ignazio |
| author_facet |
Lombardo, Carlo Ignazio Ramírez-Leira, Lucía Gasparini, Leonardo Carlos |
| author_role |
author |
| author2 |
Ramírez-Leira, Lucía 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 the bite of the national minimum wage 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 equalizing effect also on the wage distribution of informal workers. Centro de Estudios Distributivos, Laborales y Sociales |
| 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 the bite of the national minimum wage 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 equalizing effect also on the wage distribution of informal workers. |
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2022 |
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2022-09 |
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