Brazil's minimum wage hikes compress wages, raise prices, with minimal job impact.
The study looked at how raising the minimum wage in Brazil affects wages, jobs, and prices. They used data from 1982 to 2000 to see the impact at individual and regional levels. They found that increasing the minimum wage in Brazil squeezes the wages gap, has a small negative effect on jobs, and raises prices overall. This suggests that when the minimum wage goes up, wages get closer together, jobs might decrease slightly, and prices go up.