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Political Variables as Instruments for the Minimum Wage

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dc.creator Lemos, Sara
dc.date 2004
dc.date.accessioned 2013-10-16T07:10:15Z
dc.date.available 2013-10-16T07:10:15Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/20373
dc.identifier ppn:386966915
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/20373
dc.description Following the early 1980s apparent consensus, there has been a controversial debate in the literature over the direction of the minimum wage employment effect. Explanations to nonnegative effects range from theoretical to empirical identification and data issues. An explanation, however, that has not been sufficiently explored is that a non-negative effect might be an upward biased estimate of a truly negative effect, resulting from the simultaneous determination of the minimum wage and employment. This paper estimates the employment effect of the minimum wage using a number of political variables – not previously used in the literature – as excluded exogenous instruments to control for the endogeneity of the minimum wage variable. The data used is an under-explored Brazilian monthly household survey from 1982 to 2000. Robust results indicate that an increase in the minimum wage has very small adverse effects on employment.
dc.language eng
dc.relation IZA Discussion paper series 1136
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 instruments
dc.subject political variables
dc.subject Brazil
dc.subject Mindestlohn
dc.subject Beschäftigungseffekt
dc.subject Brasilien
dc.title Political Variables as Instruments for the Minimum Wage
dc.type doc-type:workingPaper
dc.coverage 1982-2000

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