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Do changes in the minimun wage affect younger and older workers differently? Evidence for Paraguay using semi-parametric methods

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  • Diego Angel-Urdinola
  • Quentin Wodon

Abstract

Semiparametric methods have been used to asses the impact of policies such as changes in the minimum wage on the distribution of wage earnings. While the methods are in the spirit of the Blinder-Oaxaca decomposition, they help to differentiate impacts according to where individuals are located in the distribution of wages, and thereby to measure impacts on wage inequality apart from average wages. In this paper, using recent repeated cross-section data from Paraguay for 1993 and 2001,we show how to use semiparametric methods to assess on different groups, such as younger and older workers. We find that changes in the minimum wage have much larger mean and distribution a effects on younger than older workers.

Suggested Citation

  • Diego Angel-Urdinola & Quentin Wodon, 2005. "Do changes in the minimun wage affect younger and older workers differently? Evidence for Paraguay using semi-parametric methods," Estudios de Economia, University of Chile, Department of Economics, vol. 32(1 Year 20), pages 25-38, June.
  • Handle: RePEc:udc:esteco:v:32:y:2005:i:1:p:25-38
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    File URL: http://www.econ.uchile.cl/uploads/publicacion/279043ad-d7f7-419e-bba7-98a9ad4bd7f8.pdf
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    References listed on IDEAS

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    Cited by:

    1. Fernando Borraz & Nicolás González, 2009. "Minimum Wage: Empirical evidence for Uruguay," Documentos de trabajo 2009003, Banco Central del Uruguay.

    More about this item

    Keywords

    Minimum Wage; Wage inequality.;

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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