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Are Wage and Employment Effects Robust to Alternative Minimum Wage Variables?

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dc.creator Lemos, Sara
dc.date 2004
dc.date.accessioned 2013-10-16T07:09:52Z
dc.date.available 2013-10-16T07:09:52Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/20305
dc.identifier ppn:383818397
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/20305
dc.description A national minimum wage cannot explain variation in wages or employment across regions. Identification of the effect of the minimum wage separately from the effect of other variables on wages or employment requires regional variation. Many minimum wage variables with regional variation have been suggested in the literature. Such a variety of variables makes it difficult to compare estimates across studies. First, estimates using different minimum wage variables are not always calibrated to represent the effect of a 10% increase in the minimum wage on wages or employment. Second, different minimum wage variables might simply measure the effect of the minimum wage on different workers. Part of the controversial recent debate in the literature over the magnitude and direction of the employment effect might be that non-directly comparable estimates are being compared. This paper estimates and critically compares the effects of the minimum wage on both wages and employment using five minimum wage variables common in the literature: real minimum wage, ?Kaitz index?, ?fraction affected?, ?fraction at? and ?fraction below? the minimum wage. The data used is a Brazilian monthly household survey from 1982 to 2000. The estimates are robust and indicate that an increase in the minimum wage compresses the wages distribution with small adverse effects on employment.
dc.language eng
dc.publisher
dc.relation IZA Discussion paper series 1070
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject J38
dc.subject ddc:330
dc.subject minimum wage
dc.subject wage effect
dc.subject employment effect
dc.subject Brazil
dc.subject Mindestlohn
dc.subject Lohnstruktur
dc.subject Beschäftigungseffekt
dc.subject Schätzung
dc.subject Brasilien
dc.title Are Wage and Employment Effects Robust to Alternative Minimum Wage Variables?
dc.type doc-type:workingPaper
dc.coverage 1982-2000


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