Economics, Econometrics and Finance
4 years ago

Minimum wage hike in Brazil increases informal sector by 39% and reduces wage inequality by 22%.

SSRN Electronic Journal
Estimating the Effects of the Minimum Wage in a Developing Country: A Density Discontinuity Design Approach
Hugo Jales

Paper Summary

Related papers

Theme background image
Social Sciences
4 years ago

PROGRESA program shows regional disparities in impact on children's outcomes

Child Labor
Maternal Nutrition
Causal Inference
1 view
Theme background image
Social Sciences
4 years ago

Public Schools Manipulating Class Sizes Could Seriously Bias Education Quality

Education Inequality
Child Labor
Water Resources
1 view
Theme background image
Social Sciences
4 years ago

Gender quotas boost women in politics but fail to empower fully.

Political Science

A new method was used to study how the minimum wage affects a developing country's economy. By looking at data from Brazil, it was found that the minimum wage led to more people working in the informal sector, increased wage inequality, and lower tax revenues. Unemployment in the formal sector went up, and some workers moved from formal to informal jobs because of the minimum wage. Overall, the size of the informal sector grew by 39% due to the minimum wage policy.