Measuring the Impact of Minimum Wages: Evidence from Latin America

29 Pages Posted: 23 Jun 2003

See all articles by William F. Maloney

William F. Maloney

World Bank - Poverty and Economic Management Unit; IZA Institute of Labor Economics; World Bank - Development Research Group (DECRG)

Jairo Nunez

Universidad de los Andes, Colombia - Department of Economics; Ministerio de la Proteccion Social

Multiple version iconThere are 2 versions of this paper

Date Written: June 2003

Abstract

This paper first provides an overview of the levels of minimum wages in Latin America and their true impact on the distribution of wages using both numerical measures and kernel density plots. It identifies numeraire' effects higher in the wage distribution and lighthouse' or reference effects in the unregulated or informal' sector. The final section then employs panel employment data from Colombia, a country where minimum wages seem high and very binding, to quantify the effects of an increase on wages and employment. The evidence suggests that in the Latin American context, the minimum wage has impacts beyond those usually contemplated in the advanced country literature.

Suggested Citation

Maloney, William F. and Nunez Mendez, Jairo Augusto, Measuring the Impact of Minimum Wages: Evidence from Latin America (June 2003). NBER Working Paper No. w9800. Available at SSRN: https://ssrn.com/abstract=418302

William F. Maloney (Contact Author)

World Bank - Poverty and Economic Management Unit ( email )

1818 H Street NW
Washington, DC 20433
United States
202-473-6340 (Phone)
202-522-0054 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Jairo Augusto Nunez Mendez

Universidad de los Andes, Colombia - Department of Economics ( email )

Carrera 1a No. 18A-10
Santafe de Bogota, AA4976
Colombia

Ministerio de la Proteccion Social

Cra. 13 No. 32-76 Piso 22
Bogota
Colombia

Register to save articles to
your library

Register

Paper statistics

Downloads
60
rank
108,668
Abstract Views
1,584
PlumX Metrics
!

Under construction: SSRN citations while be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information