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

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Kristensen, Nicolai
dc.contributor.author
Cunningham, Wendy
dc.date.accessioned
2012-06-18T20:00:35Z
dc.date.available
2012-06-18T20:00:35Z
dc.date.issued
2006-03
dc.date.lastModified
2017-12-14T04:01:58Z
dc.description.abstract
Despite 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.identifier
http://documents.worldbank.org/curated/en/2006/03/6667846/minimum-wages-latin-america-caribbean-matter-evidence-19-countries
dc.identifier.uri
http://hdl.handle.net/10986/8337
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper; No. 3870
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
ADULT WORKERS
dc.subject
AVERAGE WAGE
dc.subject
AVERAGE WAGES
dc.subject
BARGAINING POWER
dc.subject
DOMESTIC WORKERS
dc.subject
EARNING
dc.subject
EARNINGS
dc.subject
EMPLOYMENT
dc.subject
EMPLOYMENT EFFECTS
dc.subject
FIRM SIZE
dc.subject
FORMAL SECTOR WAGE
dc.subject
FORMAL SECTOR WAGES
dc.subject
HOUSEHOLD SURVEYS
dc.subject
HUMAN CAPITAL
dc.subject
INCOME
dc.subject
INCOME INEQUALITY
dc.subject
INCOMES
dc.subject
INFORMAL SECTOR
dc.subject
INFORMAL SECTOR WORKERS
dc.subject
JOB DURATION
dc.subject
JOBS
dc.subject
LABOR FORCE
dc.subject
LABOR FORCE POPULATION
dc.subject
LABOR MARKET
dc.subject
LABOR MARKET CONDITIONS
dc.subject
LABOR MARKETS
dc.subject
LABOR SUPPLY
dc.subject
LABOR SURVEYS
dc.subject
LATIN AMERICAN
dc.subject
LOCAL LABOR MARKET
dc.subject
LOW INCOME
dc.subject
MARKET WAGES
dc.subject
MINIMUM WAGE
dc.subject
MINIMUM WAGE LAWS
dc.subject
MINIMUM WAGES
dc.subject
OCCUPATION
dc.subject
OCCUPATIONS
dc.subject
OLDER WORKERS
dc.subject
PER CAPITA INCOME
dc.subject
POOR FAMILIES
dc.subject
POVERTY LINE
dc.subject
POVERTY LINES
dc.subject
PRIMARY EDUCATION
dc.subject
PRIMARY SCHOOL
dc.subject
PRIMARY SCHOOL EDUCATION
dc.subject
PRIME AGE
dc.subject
PRODUCTIVITY
dc.subject
PRODUCTIVITY LEVEL
dc.subject
PRODUCTIVITY LEVELS
dc.subject
REMUNERATION
dc.subject
SALARY
dc.subject
SANCTIONS
dc.subject
SKILLED WORKERS
dc.subject
TRINIDAD AND TOBAGO
dc.subject
UNEMPLOYMENT
dc.subject
UNEMPLOYMENT RATES
dc.subject
UNPAID WORKERS
dc.subject
UNSKILLED WORKER
dc.subject
UNSKILLED WORKERS
dc.subject
WAGE BARGAINING
dc.subject
WAGE DISPERSION
dc.subject
WAGE DISTRIBUTION
dc.subject
WAGE EARNERS
dc.subject
WAGE EFFECTS
dc.subject
WAGE FLOOR
dc.subject
WAGE LEVEL
dc.subject
WAGE LEVELS
dc.subject
WAGE STRUCTURE
dc.subject
WORK FORCE
dc.subject
WORKER
dc.subject
WORKERS
dc.subject
YOUNG WORKERS
dc.subject
YOUTH
dc.title
Do Minimum Wages in Latin America and the Caribbean Matter? Evidence from 19 Countries
en
okr.crosscuttingsolutionarea
Jobs
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/2006/03/6667846/minimum-wages-latin-america-caribbean-matter-evidence-19-countries
okr.globalpractice
Macroeconomics and Fiscal Management
okr.globalpractice
Social Protection and Labor
okr.globalpractice
Governance
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-3870
okr.identifier.externaldocumentum
000016406_20060317163644
okr.identifier.internaldocumentum
6667846
okr.identifier.report
WPS3870
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/03/17/000016406_20060317163644/Rendered/PDF/wps3870.pdf
en
okr.region.administrative
Latin America & Caribbean
okr.topic
Social Protections and Labor :: Child Labor
okr.topic
Macroeconomics and Economic Growth :: Income
okr.topic
Private Sector Development :: Corporate Social Responsibility
okr.topic
Social Protections and Labor :: Labor Markets
okr.topic
Wages
okr.topic
Compensation and Benefits
okr.unit
Development Research Group (DECRG)
okr.volume
1 of 1

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