The purpose of this article is to provide new evidence about the sources of regional income inequalities in Brazil along the wage distribution, taking into account the regional differentials in purchasing power. We use a unique and recent regional purchasing power index to adjust nominal values...

The purpose of this article is to provide new evidence about the sources of regional income inequalities in Brazil along the wage distribution, taking into account the regional differentials in purchasing power. We use a unique and recent regional purchasing power index to adjust nominal values...

It is often tempting to attempt to infer the welfare of minimum wage changes from empirical observations on pre- and post-change employment and unemployment levels and wage or earnings distributions. Using a simple model of search, matching, and bargaining, we characterize the relationship...

The available minimum wage literature is mostly based on evidence from developed countries or developing countries of Latin America. Little empirical work has been done on the effects of minimum wages in transition economies, where labour institutions experienced rapid changes and law...

We develop a search model of informal labor markets with worker and firm heterogeneity, intra-firm bargaining with imperfect substitutability across types of workers, and a comprehensive set of labor regulations, including minimum wage. Stylized facts associated with the informal sector, such as...

There is a large literature on the minimum wage focused on directly exposed firms and geographies. This paper provides new evidence that the minimum wage has significant spillover effects on firms exposed to the minimum wage indirectly via firm supply chains. Using administrative firm-level tax...

Developing countries have long been struggling to fight informality, focusing on instruments such as labor legislation enforcement, temporary contracts, and changes in taxes imposed on small firms. However, improvements in the labor force’s schooling and skill level may be more effective in...

This paper studies wage and employment effects of the minimum wage in Turkey. Our analysis suggests that while formal wages are increasing with the minimum wage, there is no significant change in informal market wages. For the employment outcomes, we observe a significant increase in informal...

There is a large literature on the minimum wage focused on directly exposed firms and geographies. This paper provides new evidence that the minimum wage has significant spillover effects on firms exposed to the minimum wage indirectly via firm supply chains. Using administrative firm-level tax...

Minimum wages continue to be at the centre of the policy debates in both developed and emerging economies. Such policies can only be effective if (1) the existing regulatory system does not have gaps that allow for the payment of wages below the minimum wage, and (2) the existing minimum wage...