The Impact of the Minimum Wage on the Labor Market, Poverty and Fiscal Budget in Brazil

2001 ◽  
Author(s):  
Miguel Natan Foguel ◽  
Lauro Roberto Ramos ◽  
Francisco Galrao Carneiro
Keyword(s):  
Labor Market ◽  
Minimum Wage ◽  
The Impact

scholarly journals Is the Minimum Wage Effective in a Context of Informality?

2021 ◽  
Vol 12 (1) ◽  
pp. 21
Author(s):  
Susana Herrero Olarte
Keyword(s):  
Labor Market ◽  
Minimum Wage ◽  
Empirical Studies ◽  
Labor Income ◽  
South American ◽  
Poverty And Inequality ◽  
South American Region ◽  
Effect Estimation ◽  
The Impact ◽  
The Relationship

There is a general trend in the South American region to increase the minimum wage (MW) to reduce poverty and inequality. However, empirical studies are inconclusive with respect to the effect of the MW. This study seeks to contribute to the empirical evidence regarding the impact of this policy by exploring its limitations and possibilities for reducing poverty in Ecuador. Unlike other studies, a measure to capture informality in the labor market is included. Using fixed effect estimation with panel data, I determine the relationship between labor income deciles and variations in the MW, using a proxy for its effectiveness. The results suggest that the MW positively affects the lower income deciles, to a lesser extent the intermediate deciles and with no effect on the higher ones. However, when considering a control for the degree of informality in the labor market, the effect on the lower deciles is mitigated. Therefore, increases in the MW may be a strategy to increase the income of the middle and vulnerable class, but it does not seem to be useful for reducing poverty.

Book Reviews

2013 ◽  
Vol 51 (2) ◽  
pp. 558-560
Keyword(s):  
Labor Market ◽  
Minimum Wage ◽  
Job Search ◽  
Labor Market Outcomes ◽  
Minimum Wages ◽  
New York University ◽  
Market Outcomes ◽  
Welfare Impacts ◽  
Wage Effects ◽  
The Impact

Etienne Wasmer of Sciences Po and LIEPP reviews, “The Minimum Wage and Labor Market Outcomes” by Christopher J. Flinn. The Econlit abstract of this book begins: “Presents a model based on search and bargaining to use in investigating the impact of a minimum wage on labor market outcomes. Discusses descriptive evidence on minimum wage effects; a model of minimum wage effects on labor market careers; labor market and welfare impacts of minimum wages; minimum wage effects on labor market outcomes—a selective survey; assessing the welfare impacts of actual changes in the minimum wage; econometric issues; model estimates and tests; optimal minimum wages; the on-the-job search; and heterogeneity. Flinn is Professor of Economics at New York University and Senior Research Fellow at Collegio Carlo Alberto.”

scholarly journals Wage differentiation in the context of labor incentives

POPULATION ◽  
2019 ◽  
Vol 22 (3) ◽  
pp. 116-129
Author(s):  
Mairash Toksanbaeva
Keyword(s):  
Labor Market ◽  
Minimum Wage ◽  
Skilled Workers ◽  
Secondary Markets ◽  
Social Partnership ◽  
Professional Groups ◽  
Skilled Personnel ◽  
Main Factors ◽  
The Impact ◽  
Wage Differentiation

Distribution of wages in Russia is characterized by high differentiation, measured in funds wage ratio, as well as by its insufficiently intensive reduction, despite the permanent increase in the minimum wage. This growth is one of the main factors reducing the funds ratio. The article considers whether these processes are combined with labor incentives that depend on how wages relate to the qualifications of labor. Qualification characteristics of labor can be determined by occupational groups, which are ranked by the qualifications of workers performing work of varying complexity. On the basis of official statistics, the average wages in professional groups and the coefficients of their differentiation in these groups are calculated. The obtained coefficients are close to the coefficients, which, within the framework of the Federal and sectoral social partnership, are recommended to enterprises as standards that are adequate to labor incentives. It follows from this that labor incentives are mainly realized. At the same time, these coefficients in many industries deviate from the standards, and therefore, there is a violation of labor incentives. It is established that these deviations are caused by the following main factors: shortage of personnel in industries and professional groups, as well as sectoral segmentation of the labor market into the primary and secondary markets. The interaction of these factors leads to the fact that the primary labor market in industries with the production of a monopoly type supports a high differentiation of earnings in favor of highly skilled workers. And in the secondary labor market, under the impact of growth of the minimum wage, wage differentiation among low-skilled personnel is compressed. Therefore, the ratio of funds decreases, but remains quite high.

Employer Responses to a City-Level Minimum Wage Mandate: Early Evidence from Seattle

2018 ◽  
Vol 56 (2) ◽  
pp. 451-479 ◽  
Author(s):  
Jennifer L. Romich ◽  
Scott W. Allard ◽  
Emmi E. Obara ◽  
Anne K. Althauser ◽  
James H. Buszkiewicz
Keyword(s):  
Labor Market ◽  
Minimum Wage ◽  
Policy Makers ◽  
Ownership Structures ◽  
Early Evidence ◽  
Trade Offs ◽  
Wage Regulation ◽  
Accommodation Sector ◽  
The Impact ◽  
Insight Into

A growing number of cities and counties have recently raised their minimum wages. How employers respond to these mandates provides insight into the impact such policies might have on workers and local labor market. Drawing on two survey waves tracking initial responses to Seattle’s $15 Minimum Wage Ordinance by 439 employers with low-wage workers, we show how employers adjusted to higher wages. Most commonly, firms raised prices (56% reported this); smaller percentages reduced employee headcount or hours, limited internal wage progression, or took other measures. Single-site Seattle employers responded similarly to those with multiple sites. Food and accommodation sector employers were more likely to raise prices than firms in other sectors. Relative to other ownership structures, franchises disproportionately reported reducing their workforces. Very few employers reported withdrawing from Seattle. Overall, initial employer responses to this city-level minimum wage law align with predictions from the literature, findings that highlight trade-offs that policy makers must consider in future local wage regulation.

The Impact of the 1896 Factory and Shops Act on the Labor Market of Victoria, Australia

2018 ◽  
Vol 78 (3) ◽  
pp. 785-821
Author(s):  
Andrew J. Seltzer ◽  
Jeff Borland
Keyword(s):  
Labor Market ◽  
Minimum Wage ◽  
Minimum Wages ◽  
Level Data ◽  
Gender And Age ◽  
The Impact

This article examines the effects of the Victorian Factory and Shops Act, the first minimum wage law in Australia. The Act differed from modern minimum wage laws in that it established Special Boards, which set trade-specific minimum wage schedules. We use trade-level data on average wages and employment by gender and age to examine the effects of minimum wages. Although the minimum wages were binding, we find that the effects on employment were modest, at best. We speculate that this was because the Special Boards, which were comprised of industry insiders, closely matched the labor market for their trades.

scholarly journals THE IMPACT OF MINIMUM WAGE ON THE LABOUR MARKET OF LITHUANIA

Ekonomika ◽  
2011 ◽  
Vol 90 (2) ◽  
pp. 78-87 ◽  
Author(s):  
Vita Karpuškienė
Keyword(s):  
Labor Market ◽  
Labour Market ◽  
Minimum Wage ◽  
Trade Unions ◽  
Eu Countries ◽  
The Government ◽  
The Impact ◽  
The Eu

Recently, Lithuanian trade unions have announced the requirement for the government to raise the minimum wage by more than 10 percent, e.g. from 800 to 900 Lt. The aim of the study was to investigate the possible consequences of the implementation of such a requirement. Minimum wage (MW) macroeconomics in theoretical aspects and the practical evidence of it consequences in the EU countries are analyzed in the first part of the article. The second part provides an assessment of the impact of the 100 Lt raise in MW on the Lithuanian labor market. This assessment is carried out using econometric techniques.

Implications of higher retirement age for the labor market

2017 ◽  
pp. 22-39 ◽  
Author(s):  
M. Ivanova ◽  
A. Balaev ◽  
E. Gurvich
Keyword(s):  
Economic Growth ◽  
Labor Market ◽  
Labor Supply ◽  
Labor Force ◽  
Labor Demand ◽  
Retirement Age ◽  
Demographic Trends ◽  
Men And Women ◽  
Demographic Projections ◽  
The Impact

The paper considers the impact of the increase in retirement age on labor supply and economic growth. Combining own estimates of labor participation and demographic projections by the Rosstat, the authors predict marked fall in the labor force (by 5.6 million persons over 2016-2030). Labor demand is also going down but to a lesser degree. If vigorous measures are not implemented, the labor force shortage will reach 6% of the labor force by the period end, thus restraining economic growth. Even rapid and ambitious increase in the retirement age (by 1 year each year to 65 years for both men and women) can only partially mitigate the adverse consequences of demographic trends.

Income and Life Quality of Farmer Households Suffering Social Exclusion

2012 ◽  
pp. 63-87
Author(s):  
Anh Mai Ngoc ◽  
Ha Do Thi Hai ◽  
Huyen Nguyen Thi Ngoc
Keyword(s):  
Labor Market ◽  
Statistical Method ◽  
Social Exclusion ◽  
Central Government ◽  
Life Quality ◽  
Economic Aspect ◽  
Local Authorities ◽  
The Impact

This study uses descriptive statistical method to analyze the income and life qual- ity of 397 farmer households who are suffering social exclusion in an economic aspect out of a total of 725 households surveyed in five Northern provinces of Vietnam in 2010. The farmers’ opinions of the impact of the policies currently prac- ticed by the central government and local authorities to give them access to the labor market are also analyzed in this study to help management officers see how the poli- cies affect the beneficiaries so that they can later make appropriate adjustments.

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