Minimum Wage, Labor Market and Economic Policy (Salario Mínimo, Mercado Laboral Y Política Económica)
Revista CIFE, Universidad Santo Tomás. Año, Vol. 11, No. 13, pp. 335-352, 2008
18 Pages Posted: 23 May 2010
Date Written: December 2008
Abstract
The empirical evidence shows that the effects of the increase in the minimum wage on the labor market are: i) to increase the wage level, nevertheless the effects on every decile of the income distribution are different, and there exists a (effect lighthouse) on the informal sector, and ii) to diminish the employment, but in the case the young people it can have positive effects, this is to increase their employment rate, although the evidence is very weak. This takes us that the effect on the labor market is confused, therefore, it is of importance to keep on studying in depth the study of the young people on the labor market for the addressing of the politics of the government. Now then, the relations between minimum wage and economic policy show us that there is a clear indexation on the prices accentuated by the mistakes of the constitutional court, and the effects on poverty and the system pensional have not been analyzed by major depth, therefore it is very interesting to deepen in the future on these questions.
(La evidencia empírica muestra que los efectos del incremento en el salario mínimo sobre el mercado laboral son: i) incrementar el nivel salarial, sin embargo los efectos sobre cada decil de la distribución del ingreso son distintos, y existe un (efecto faro) sobre el sector informal, y ii) disminuir el empleo, pero en el caso los jóvenes puede tener efectos positivos, esto es incrementar el nivel de empleo de ellos, aunque la evidencia es muy débil. Esto nos lleva a que el efecto sobre el mercado laboral sea confuso, por tanto, es importante seguir profundizando en el estudio de los jóvenes en el mercado laboral para el direccionamiento de las políticas del gobierno. Ahora bien, las relaciones entre salario mínimo y política económica nos muestran que hay una clara indexación sobre los precios, acentuados por los fallos de la Corte Constitucional, y los efectos sobre pobreza y el sistema pensional no se han analizado con mayor profundidad, por tanto es muy interesante ahondar en el futuro sobre estos cuestiones.)
Note: Downloadable document is in Spanish.
Keywords: minimum wage, income distribution, economic policy, market.
JEL Classification: J23, J30
Suggested Citation: Suggested Citation
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