Assessing the distributive effects of the minimum wage

Available from: 
October 2013
Paper author(s): 
Fernando Borraz (Banco Central del Uruguay)
Nicolás González Pampillón (CEMFI)
Topic: 
Labor
Poverty - Inequality - Aid Effectiveness
Year: 
2013

LACEA

This paper analyzes the role of sharply increases in the minimum wage after 2004 in Uruguay amidst the slight decrease on wage inequality. We find that the increase in the minimum wage contributes to the reduction on wage inequality. However, we do find negative impact on employment outside the capital Montevideo city and we observe a reduction in hours of work. These results raise doubts about the effectiveness of the minimum wage as a redistribution instrument in developing countries.

ACCESS PAPER

Go back to the Conference Menu Page

Research section: 
Lacea 2013 annual meeting
Share this