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O Esgotamento do Papel do Salário Mínimo Como Mecanismo de Combate à Pobreza Extrema

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  • Fabio Giambiagi
  • Samuel Franco

Abstract

This paper analyses the evolution of the minimum wage in Brazil after the stabilization of the Real Plan. It is shown that between 1994 and 2007, the variable had an accumulated real increase of more than 100%. Consequently, its value has advanced in the degree of income and it is estimated that in 2007 it should have reached 41% of the average earning. The article points to the end of the effectiveness of the policy of real increases of minimum wage as a means to reduce the extreme poverty. Based on this, it is suggested to maintain the real value of the minimum wage in the next decade and to concentrate the additional public expenditures in better focused and with higher social return policies.

Suggested Citation

  • Fabio Giambiagi & Samuel Franco, 2007. "O Esgotamento do Papel do Salário Mínimo Como Mecanismo de Combate à Pobreza Extrema," Discussion Papers 1290, Instituto de Pesquisa Econômica Aplicada - IPEA.
  • Handle: RePEc:ipe:ipetds:1290
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