sector workers. We use this unexpected minimum wage hike under former president Rafael Correa to assess the labor market … differences-in-differences approach at the firm level, we find that the minimum wage hike led to a decrease in labor demand in … affected firms by 0.5 percent after one month and by 2.5 percent after four months. The decrease in labor demand resulted from …

, hours worked and output without reducing employment. In frictional labor markets, however, reallocation takes time whenever …

that there has been no increase in the minimum wage in previous years, to account for heterogeneous labor market prospects …, highly exposed municipalities, and tradable sectors may be more negatively affected. In contrast, labor market concentration …

-sloping labor supply schedule. Since this turns these firms into endogenous monopsonists, the minimum wage rate has the perverse …

employed workers in competitive labor markets. The reason is that employers may not comply with the minimum wage legislation …

impact on labor productivity and they lead to a fall in the unemployment rate. Collective bargaining reforms do not seem to … affect either productivity or capital formation but they have a clear medium-term effect on the labor market. Moreover …