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Efectos Del Incremento De La Remuneracion Mínima Vital Sobre El Empleo Y Los Ingresos Laborales

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  • Jesús Palomino Samaniego

    (Departamento de Economía - Pontificia Universidad Católica del Perú)

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    Abstract

    Following the studies of Jaramillo (2004), Céspedes (2006) and Del Valle (2009), the present research evaluates the short term effects of the increase of the minimum wage on employment and labour income in Lima Metropolitana. The contribution of the paper consists in modeling the labour market in three sectors: formal employment, “competitive” informal employment and “subsistence” informal employment. This will allow us to identify the differentiated effects of the minimum wage in the labour market. We propose that the increase in the minimum wage imposes a higher barrier to the demand of low skilled labour, expulsing these workers to subsistence activities in the informal sector, while employment in the “competitive” informal sector remains unaffected. Consequently, we expect a higher labour income in the formal sector, a lower labour income in the “subsistence” informal sector due to the increased competence, and no significant changes in the “competitive” informal sector. We design a stratified propensity score matching methodology for the empirical identification of the “competitive” and “subsistence” informal sectors, and follow Neumark (1994) for the impact assessment of the minimum wage. The results confirm the hypothesis about the effects on employment, but fail to confirm those about the effects on labour income.

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    Bibliographic Info

    Paper provided by Departamento de Economía - Pontificia Universidad Católica del Perú in its series Documentos de Trabajo with number 2011-313.

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    Length: pages
    Date of creation: 2011
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    Publication status: published
    Handle: RePEc:pcp:pucwps:wp00313

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    Postal: Av. Universitaria 1801, San Miguel, Lima, Perú
    Phone: (511) 626-2000 ext. 4950, 4951
    Fax: (511) 626-2874
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    Web page: http://departamento.pucp.edu.pe/economia/
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    Keywords: Salario mínimo / Empleo / Ingresos laborales / Economía laboral / Informalidad;

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    References

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    1. Céspedes, Nikita, 2006. "Efectos del salario mínimo en el mercado laboral peruano," Revista Estudios Económicos, Banco Central de Reserva del Perú, issue 13.
    2. Gustavo Yamada, 2004. "Avances recientes," Chapters of Books, in: Gustavo Yamada (ed.), Economía laboral en el Perú: avances recientes y agenda pendiente, edition 1, volume 1, chapter 1, pages 11-42 Departamento de Economía, Universidad del Pacífico.
    3. Burdett, Kenneth & Mortensen, Dale T, 1998. "Wage Differentials, Employer Size, and Unemployment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 257-73, May.
    4. Alan Manning & Ted To, 2002. "Oligopsony and Monopsonistic Competition in Labor Markets," Journal of Economic Perspectives, American Economic Association, vol. 16(2), pages 155-174, Spring.
    5. Adolfo Figueroa, 2009. "El problema del empleo en una sociedad sigma," Capítulos de libros PUCP, in: Efraín Gonzales de Olarte & Javier M. Iguiñiz Echeverría (ed.), Desarrollo económico y bienestar. Homenaje a Máximo Vega-Centeno, edition 1, chapter 6, pages 153-206 Departamento de Economía - Pontificia Universidad Católica del Perú.
    6. Neumark, David & Wascher, William L., 2007. "Minimum Wages and Employment," Foundations and Trends(R) in Microeconomics, now publishers, vol. 3(1–2), pages 1-182, March.
    7. Neumark, D. & Schweitzer, M. & Wascher, W., 1999. "The Effect of Minimum Wages Throughout the Wage Distribution," Papers 9919, London School of Economics - Centre for Labour Economics.
    8. Jaime Saavedra-Chanduví & Máximo Torero, 2000. "Labor Market Reforms and Their Impact on Formal Labor Demand and Job Market Turnover: The Case of Peru," Research Department Publications 3095, Inter-American Development Bank, Research Department.
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