This paper aims at contributing to the debate regarding the role of the minimum wage in Brazil. This is carried out by assessing its potential effects on the labor market outcomes, as well in terms of poverty alleviation and fiscal impact. First, a succinct description of the institutional...

We develop a theoretical model with labor market frictions, incomplete financial markets and with households which have two members. Households face unemployment risks but their members adjust their labor supplies to insure against unemployment. We use the model to explain the cyclical...