We examine the drivers of inequality change in Honduras between 1991-2007, trying to understand why inequality …, we document first rising inequality between 1991-2005, which is followed by falling inequality thereafter. Using an … inequality decomposition technique, we show that the rising inequality between 1991 and 2005 was, for the most part, driven by …

market regulations such as minimum wage legislation because they constrain job creation and hence increase poverty. On the … poverty. We take advantage of a complex minimum wage system in a poor country that has been exposed to the forces of … globalization to test whether minimum wages are an effective poverty reduction tool in this environment. We find the net effect of …