Boeri, Tito; Garibaldi, Pietro; Ribeiro, Marta - Collegio Carlo Alberto, Università degli Studi di Torino - 2010
A large body of empirical literature indicates that, contrary to predictions from economic theory, wages in the informal sector increase after a minimum wage hike. This phenomenon was so far explained as a byproduct of a signal (a lighthouse) conveyed by statutory minima to wage setting in the...