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Minimum Wage and Income Distribution in Brazil from the 2000s

Saboia, João; Neto, João Hallak (2016-03), Minimum Wage and Income Distribution in Brazil from the 2000s. https://basepub.dauphine.fr/handle/123456789/17827

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Type
Document de travail / Working paper
Date
2016-03
Series title
NOPOOR Working Paper
Series number
44
Pages
20
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Author(s)
Saboia, João

Neto, João Hallak
Abstract (EN)
For several years Brazilian minimum wage (MW) has been going through an intense process of growth. Different authors have argued that an important part of the improvement in income distribution can be attributed to increased MW in recent past. Using income elasticities with respect to MW, this paper seeks to estimate the effects of current MW adjustment policy on improving income distribution. The results of simulations show that the MW contributed greatly in recent years through the labor market as well as through pensions and other official income transfers
Subjects / Keywords
Minimum wage; Brazilian income distribution; functional income distribution
JEL
J30 - General
J38 - Public Policy
H53 - Government Expenditures and Welfare Programs
E24 - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
E27 - Forecasting and Simulation: Models and Applications