Do minimum wage price effects hurt the poor more?

Minimum wage legislation is potentially a powerful policy tool to help alleviate poverty in developing countries. This is especially the case when the detrimental employment effects are small. However, of critical importance is whether, and to what extent, minimum wage increases will generate price...

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Autor principal: Lemos, Sara
Formato: Articulo
Lenguaje:Inglés
Publicado: 2004
Materias:
Ciencias Económicas
diferencias salariales
salario
JEL: J32
economía
pobreza
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/9210
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-9210
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
diferencias salariales
salario
JEL: J32
economía
pobreza
spellingShingle Ciencias Económicas
diferencias salariales
salario
JEL: J32
economía
pobreza
Lemos, Sara
Do minimum wage price effects hurt the poor more?
topic_facet Ciencias Económicas
diferencias salariales
salario
JEL: J32
economía
pobreza
description Minimum wage legislation is potentially a powerful policy tool to help alleviate poverty in developing countries. This is especially the case when the detrimental employment effects are small. However, of critical importance is whether, and to what extent, minimum wage increases will generate price effects that might adversely affect the poor. This might occur, firstly, if the poor consume a lot of goods produced in sectors dominated by minimum wage workforces. Secondly, this may occur if minimum wage increases raise overall prices, as the poor disproportionately suffer from inflationary costs. In this paper we estimate minimum wage price effects for Brazil, using monthly household and firm data over nearly two decades. We find that minimum wage increases significantly raise overall prices in Brazil. Furthermore, we examine the price effect of the minimum wage separately on poor and rich consumers. The poor experience inflation rates three times higher that the latter, in the immediate aftermath of a minimum wage increase, with the differential effect diminishing over time.
format Articulo
Articulo
author Lemos, Sara
author_facet Lemos, Sara
author_sort Lemos, Sara
title Do minimum wage price effects hurt the poor more?
title_short Do minimum wage price effects hurt the poor more?
title_full Do minimum wage price effects hurt the poor more?
title_fullStr Do minimum wage price effects hurt the poor more?
title_full_unstemmed Do minimum wage price effects hurt the poor more?
title_sort do minimum wage price effects hurt the poor more?
publishDate 2004
url http://sedici.unlp.edu.ar/handle/10915/9210
work_keys_str_mv AT lemossara dominimumwagepriceeffectshurtthepoormore
bdutipo_str Repositorios
_version_ 1764820491039670275

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