Publication:
Do Minimum Wages in Latin America and the Caribbean Matter? Evidence from 19 Countries

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dc.contributor.authorKristensen, Nicolai
dc.contributor.authorCunningham, Wendy
dc.date.accessioned2012-06-18T20:00:35Z
dc.date.available2012-06-18T20:00:35Z
dc.date.issued2006-03
dc.description.abstractDespite the existence of minimum wage legislation in most Latin American countries, there is little empirical evidence demonstrating its impact on the distribution of wages. In this study the authors analyze cross-country data for 19 Latin American and Caribbean (LAC) countries to gain an understanding of if and how minimum wages affect wage distributions in LAC countries. Although there is no single minimum wage institution in the LAC region, the authors find regional trends. Minimum wages affect the wage distribution in both the formal and, especially, the informal sector, both at the minimum wage and at multiples of the minimum. The minimum does not uniformly benefit low-wage workers: in countries where the minimum wage is relatively low compared to mean wages, the minimum wage affects the more disadvantaged segments of the labor force, namely informal sector workers, women, young and older workers, and the low skilled, but in countries where the minimum wage is relatively high compared to the wage distribution, it primarily affects wages of the high skilled. This indicates that the minimum does not generally lift the wages of all, but instead, it offers a wage into which employers can "lock in" wages that are already near that level. Thus, minimum wage legislation is more far-reaching than originally thought, affecting both the uncovered informal sector and those earning above the minimum. In addition, the relative level of the minimum wage is important for determining whose wages are affected.en
dc.identifierhttp://documents.worldbank.org/curated/en/2006/03/6667846/minimum-wages-latin-america-caribbean-matter-evidence-19-countries
dc.identifier.doi10.1596/1813-9450-3870
dc.identifier.urihttps://hdl.handle.net/10986/8337
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 3870
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectADULT WORKERS
dc.subjectAVERAGE WAGE
dc.subjectAVERAGE WAGES
dc.subjectBARGAINING POWER
dc.subjectDOMESTIC WORKERS
dc.subjectEARNING
dc.subjectEARNINGS
dc.subjectEMPLOYMENT
dc.subjectEMPLOYMENT EFFECTS
dc.subjectFIRM SIZE
dc.subjectFORMAL SECTOR WAGE
dc.subjectFORMAL SECTOR WAGES
dc.subjectHOUSEHOLD SURVEYS
dc.subjectHUMAN CAPITAL
dc.subjectINCOME
dc.subjectINCOME INEQUALITY
dc.subjectINCOMES
dc.subjectINFORMAL SECTOR
dc.subjectINFORMAL SECTOR WORKERS
dc.subjectJOB DURATION
dc.subjectJOBS
dc.subjectLABOR FORCE
dc.subjectLABOR FORCE POPULATION
dc.subjectLABOR MARKET
dc.subjectLABOR MARKET CONDITIONS
dc.subjectLABOR MARKETS
dc.subjectLABOR SUPPLY
dc.subjectLABOR SURVEYS
dc.subjectLATIN AMERICAN
dc.subjectLOCAL LABOR MARKET
dc.subjectLOW INCOME
dc.subjectMARKET WAGES
dc.subjectMINIMUM WAGE
dc.subjectMINIMUM WAGE LAWS
dc.subjectMINIMUM WAGES
dc.subjectOCCUPATION
dc.subjectOCCUPATIONS
dc.subjectOLDER WORKERS
dc.subjectPER CAPITA INCOME
dc.subjectPOOR FAMILIES
dc.subjectPOVERTY LINE
dc.subjectPOVERTY LINES
dc.subjectPRIMARY EDUCATION
dc.subjectPRIMARY SCHOOL
dc.subjectPRIMARY SCHOOL EDUCATION
dc.subjectPRIME AGE
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY LEVEL
dc.subjectPRODUCTIVITY LEVELS
dc.subjectREMUNERATION
dc.subjectSALARY
dc.subjectSANCTIONS
dc.subjectSKILLED WORKERS
dc.subjectTRINIDAD AND TOBAGO
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT RATES
dc.subjectUNPAID WORKERS
dc.subjectUNSKILLED WORKER
dc.subjectUNSKILLED WORKERS
dc.subjectWAGE BARGAINING
dc.subjectWAGE DISPERSION
dc.subjectWAGE DISTRIBUTION
dc.subjectWAGE EARNERS
dc.subjectWAGE EFFECTS
dc.subjectWAGE FLOOR
dc.subjectWAGE LEVEL
dc.subjectWAGE LEVELS
dc.subjectWAGE STRUCTURE
dc.subjectWORK FORCE
dc.subjectWORKER
dc.subjectWORKERS
dc.subjectYOUNG WORKERS
dc.subjectYOUTH
dc.titleDo Minimum Wages in Latin America and the Caribbean Matter? Evidence from 19 Countriesen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleDo Minimum Wages In Latin America And The Caribbean Matter ? Evidence From 19 Countries
okr.date.doiregistration2025-04-10T10:14:13.156895Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2006/03/6667846/minimum-wages-latin-america-caribbean-matter-evidence-19-countries
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeGovernance
okr.guid516411468277136389
okr.identifier.doi10.1596/1813-9450-3870
okr.identifier.externaldocumentum000016406_20060317163644
okr.identifier.internaldocumentum6667846
okr.identifier.reportWPS3870
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/03/17/000016406_20060317163644/Rendered/PDF/wps3870.pdfen
okr.region.administrativeLatin America & Caribbean
okr.topicSocial Protections and Labor::Child Labor
okr.topicMacroeconomics and Economic Growth::Income
okr.topicPrivate Sector Development::Corporate Social Responsibility
okr.topicSocial Protections and Labor::Labor Markets
okr.topicWages
okr.topicCompensation and Benefits
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication37bc44c3-8af5-5f13-acac-468a089b1e1e
relation.isAuthorOfPublication.latestForDiscovery37bc44c3-8af5-5f13-acac-468a089b1e1e
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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