Anticipated Effects of the Minimum Wage on Prices
AbstractThere is little empirical evidence on the effect of minimum wage increases on prices, particularly for developing countries. This paper estimates this effect using monthly Brazilian household and firm data over 18 years. As minimum wage increases in Brazil are large, frequent and affect a sizable fraction of the labor force, they affect aggregate prices. Because of this expected price effect, rational agents may take such increases as a signal for future price and wage bargains. Indeed, robust results indicate that the minimum wage raises overall prices not only on the month of the increase, but also in the two months before.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number 04/25.
Date of creation: Aug 2004
Date of revision:
Contact details of provider:
Postal: Department of Economics University of Leicester, University Road. Leicester. LE1 7RH. UK
Phone: +44 (0)116 252 2887
Fax: +44 (0)116 252 2908
Web page: http://www2.le.ac.uk/departments/economics
More information through EDIRC
Other versions of this item:
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sara Lemos, 2004. ""Minimum Wage Policy and Employment Effects: Evidence from Brazil”," Journal of LACEA Economia, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
- Sara lemos, 2004.
"The Effect of the Minimum Wage on Prices,"
Discussion Papers in Economics
04/7, Department of Economics, University of Leicester.
- Pinelopi K. Goldberg & Michael M. Knetter, 1996.
"Goods Prices and Exchange Rates: What Have We Learned?,"
NBER Working Papers
5862, National Bureau of Economic Research, Inc.
- Pinelopi Koujianou Goldberg & Michael M. Knetter, 1997. "Goods Prices and Exchange Rates: What Have We Learned?," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1243-1272, September.
- Jaehwan Park & Ronald Ratti, 1998. "Stationary data and the effect of the minimum wage on teenage employment," Applied Economics, Taylor & Francis Journals, vol. 30(4), pages 435-440.
- David Neumark & William Wascher, 1992. "Employment effects of minimum and subminimum wages: Panel data on state minimum wage laws," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 46(1), pages 55-81, October.
- Stephen Machin & Alan Manning, 1992. "Minimum Wages," CEP Discussion Papers dp0080, Centre for Economic Performance, LSE.
- Poterba, James M., 1996. "Retail Price Reactions to Changes in State and Local Sales Taxes," National Tax Journal, National Tax Association, vol. 49(2), pages 165-76, June Cita.
- Weiss, Y., 1992. "Inflation and price Adjustment : A Susvey of Findings from Micro-Data," Papers 3-92, Tel Aviv - the Sackler Institute of Economic Studies.
- Stephen Machin & Alan Manning & Lupin Rahman, 2003. "Where the Minimum Wage Bites Hard: Introduction of Minimum Wages to a Low Wage Sector," Journal of the European Economic Association, MIT Press, vol. 1(1), pages 154-180, 03.
- Daniel Aaronson, 2001. "Price Pass-Through And The Minimum Wage," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 158-169, February.
- Juli?n Messina & Anna Sanz-de-Galdeano, 2014. "Wage Rigidity and Disinflation in Emerging Countries," American Economic Journal: Macroeconomics, American Economic Association, vol. 6(1), pages 102-33, January.
- Ernesto Sheriff, 2010. "Inflationary memory as restrictive factor of the impact of the public expense in the economic growth: lessons from high inflation Latin American countries using an innovative inflationary memory indic," Development Research Working Paper Series 13/2010, Institute for Advanced Development Studies.
- Luis Eduardo Arango & Luz Karine Ardila & Miguel Ignacio Gömez, .
"Efecto del cambio del salario mínimo en el precio de las comidas fuera del hogar en Colombia,"
Borradores de Economia
584, Banco de la Republica de Colombia.
- Luis Eduardo Arango & Luz Karine Ardila & Miguel Igancio Gómez, 2010. "Efecto del cambio del salario mínimo en el precio de las comidas fuera del hogar en Colombia," BORRADORES DE ECONOMIA 006621, BANCO DE LA REPÚBLICA.
- Gabriel Ulyssea & Miguel N. Foguel, 2006. "Efeitos do Salário Mínimo Sobre o Mercado de Trabalho Brasileiro," Discussion Papers 1168, Instituto de Pesquisa Econômica Aplicada - IPEA.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mrs. Alexandra Mazzuoccolo).
If references are entirely missing, you can add them using this form.