The available estimations about the effect of minimum wage on poverty relies on partial equilibrium analysis. We estimate these effects in Brazil through a general equilibrium framework, dealing with lots of indirect effects of minimum wage. Using a computable general equilibrium model we...

In an international framework favourable to the performance of the Brazilian economy, the increase in the minimum wage and the formalization of labour contracts boosted GDP growth, increasing consumption growth with the incorporation of part of the low-income people to the market. The global...