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Assessing the Distributive Impact of More than Doubling the Minimum Wage: The Case of Uruguay

Author Info

Listed author(s):
  • Fernando Borraz

    ()

    (Banco Central del Uruguay y Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)

  • Nicolás Gonzalez Pampillón

    ()

    (Universidad de Montevideo)

Abstract

This paper analyzes the role of the sharply increases in the minimum wage after 2004 in Uruguay in the slight decrease on wage inequality. We Önd no impact of the miminum wage increases on wage inequality. This results can be explained by the low starting level of the minimum wage or lack of compliance with it. The Uruguayan experience shows that the minimum wage is not always e§ective as a redistribution instrument.

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File URL: http://cienciassociales.edu.uy/departamentodeeconomia/wp-content/uploads/sites/2/2013/archivos/1711.pdf
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Paper provided by Department of Economics - dECON in its series Documentos de Trabajo (working papers) with number 1711.

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Length: 31 pages
Date of creation: Aug 2011
Handle: RePEc:ude:wpaper:1711
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More information through EDIRC

Keywords: minimum wage; wage inequality; IV; semiparametric estimation;

Find related papers by JEL classification:

  • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
  • 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

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  1. Michael Lokshin, 2006. "Difference-based semiparametric estimation of partial linear regression models," Stata Journal, StataCorp LP, vol. 6(3), pages 377-383, September.
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  16. Xulia GonzÂlez & Daniel Miles, 2001. "Wage inequality in a developing country: decrease in minimum wage or increase in education returns," Empirical Economics, Springer, vol. 26(1), pages 135-148.
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Cited by:

  1. Jain, Sanjay & Majumdar, Sumon & Mukand, Sharun W, 2014. "Walk the line: Conflict, state capacity and the political dynamics of reform," Journal of Development Economics, Elsevier, vol. 111(C), pages 150-166.
  2. Gustavo Canavire-Bacarreza & Fernando Rios-Avila, 2015. "On the Determinants of Changes in Wage Inequality in Bolivia," Economics Working Paper Archive wp_835, Levy Economics Institute.
  3. Louise Cord & Maria Eugenia Genoni & Carlos Rodriguez Castelan, 2015. "Shared Prosperity and Poverty Eradication in Latin America and the Caribbean," World Bank Publications, The World Bank, number 21751, August.
  4. Sandra Rodríguez, 2014. "Wage inequality in Uruguay: Technological change impact on occupational tasks," Documentos de Trabajo (working papers) 14-15, Instituto de Economía - IECON.

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