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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)

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.

Suggested Citation

  • Jesús Palomino Samaniego, 2011. "Efectos Del Incremento De La Remuneracion Mínima Vital Sobre El Empleo Y Los Ingresos Laborales," Documentos de Trabajo / Working Papers 2011-313, Departamento de Economía - Pontificia Universidad Católica del Perú.
  • Handle: RePEc:pcp:pucwps:wp00313
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    File URL: http://files.pucp.edu.pe/departamento/economia/DDD313.pdf
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    References listed on IDEAS

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    1. Adolfo Figueroa, 2009. "El problema del empleo en una sociedad sigma," Capítulos de Libros PUCP / Chapters of PUCP books,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 Fondo Editorial - Pontificia Universidad Católica del Perú.
    2. Jaime Saavedra-Chanduví & Máximo Torero, 2000. "Labor Market Reforms and Their Impact on Formal Labor Demand and Job Market Turnover: The Case of Peru," IDB Publications (Working Papers) 3269, Inter-American Development Bank.
    3. Céspedes, Nikita, 2006. "Efectos del salario mínimo en el mercado laboral peruano," Revista Estudios Económicos, Banco Central de Reserva del Perú, issue 13.
    4. 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.
    5. 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 257-273, May.
    6. 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 Fondo Editorial, Universidad del Pacífico.
    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. Del Valle, Marielle, 2009. "Impacto del ajuste de la Remuneración Mínima Vital sobre el empleo y la informalidad," Revista Estudios Económicos, Banco Central de Reserva del Perú, issue 16, pages 83-102.
    9. 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.
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    More about this item

    Keywords

    Salario mínimo / Empleo / Ingresos laborales / Economía laboral / Informalidad;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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