Earnings Inequality and the Minimum Wage evidence from Brazil by Niklas Engbom and Christian Moser
By: Engbom, Niklas
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Contributor(s): Moser, Christian.
Material type: 
ArticleSubject(s): DESIGUALDAD | SALARIO MINIMO | INCREMENTO | DESARROLLO ECONOMICO | EMPLEO | BRASIL
In:
The American Economic Review v. 112, n. 12, December 2022, p. 3803-3847Summary: Increases in the minimum wage can substantially reduce earnings inequality. To demonstrate this, we combine administrative and survey data with an equilibrium model of the Brazilian labor market. We find that a 128 percent increase in the real minimum wage in Brazil between 1996 and 2018 had far-reaching spillover effects on wages higher up in the distribution. The increased minimum wage accounts for 45 percent of a large fall in earnings inequality over this period. At the same time, the effects of the minimum wage on employment and output are muted by reallocation of workers toward more productive firms.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 234/2022/12-1 (Browse shelf) | Available | OP 234/2022/12-1 |
Resumen.
Bibliografía.
Increases in the minimum wage can substantially reduce earnings inequality. To demonstrate this, we combine administrative and survey data with an equilibrium model of the Brazilian labor market. We find that a 128 percent increase in the real minimum wage in Brazil between 1996 and 2018 had far-reaching spillover effects on wages higher up in the distribution. The increased minimum wage accounts for 45 percent of a large fall in earnings inequality over this period. At the same time, the effects of the minimum wage on employment and output are muted by reallocation of workers toward more productive firms.
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