Minimum wage effects under endogenous compliance: evidence from Perú

Latin American labor markets feature large informal sectors. In practice, however, the simple duality formal-informal has many different shades: firms tend to comply more with certain legislation than with other. Recent evidence has suggested that minimum wages have significant effects on the inform...

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Detalles Bibliográficos
Autor principal: Jaramillo Baanante, Miguel
Formato: Articulo
Lenguaje:Inglés
Publicado: 2004
Materias:
Ciencias Económicas
mercado laboral
Perú
diferencias salariales
salario
JEL: J23, J38, O17
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/9211
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-9211
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
mercado laboral
Perú
diferencias salariales
salario
JEL: J23, J38, O17
spellingShingle Ciencias Económicas
mercado laboral
Perú
diferencias salariales
salario
JEL: J23, J38, O17
Jaramillo Baanante, Miguel
Minimum wage effects under endogenous compliance: evidence from Perú
topic_facet Ciencias Económicas
mercado laboral
Perú
diferencias salariales
salario
JEL: J23, J38, O17
description Latin American labor markets feature large informal sectors. In practice, however, the simple duality formal-informal has many different shades: firms tend to comply more with certain legislation than with other. Recent evidence has suggested that minimum wages have significant effects on the informal sector (Bell (1997) for Mexico; Gindling and Terrell (2004) for Costa Rica; Lemos (2004) and Fajnzylver (2001) for Brazil; and Maloney and Nuñez (2004) for Colombia). Further, some of this evidence suggests effects throughout a large part of the wage distribution. This has been interpreted as evidence of 'lighthouse' or numeraire effects. We test this hypothesis using panel data from Peru to identify effects throughout the wage distribution. Although there are some effects on informal sector workers, overall results provide little support for numeraire or 'lighthouse' effects. Labor monthly earnings are affected only at the bottom of the distribution (0.25-0.60 of the minimum wage), made up mostly of informal workers, and for formal workers earning between the old the new minima. Negative effects on the probability of retaining employed status after a minimum wage shock are either weak or non significant for wage earners below the minimum wage, but significant for formal workers 'trapped' between minima, and for both formal and informal earning between 1.2 and 2 times the minimum wage. Independent workers earning below minimum suffer negative effects on both earnings and employment.
format Articulo
Articulo
author Jaramillo Baanante, Miguel
author_facet Jaramillo Baanante, Miguel
author_sort Jaramillo Baanante, Miguel
title Minimum wage effects under endogenous compliance: evidence from Perú
title_short Minimum wage effects under endogenous compliance: evidence from Perú
title_full Minimum wage effects under endogenous compliance: evidence from Perú
title_fullStr Minimum wage effects under endogenous compliance: evidence from Perú
title_full_unstemmed Minimum wage effects under endogenous compliance: evidence from Perú
title_sort minimum wage effects under endogenous compliance: evidence from perú
publishDate 2004
url http://sedici.unlp.edu.ar/handle/10915/9211
work_keys_str_mv AT jaramillobaanantemiguel minimumwageeffectsunderendogenouscomplianceevidencefromperu
bdutipo_str Repositorios
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