Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/154747
Authors: 
Borraz, Fernando
González Pampillón
Year of Publication: 
2017
Series/Report no.: 
GLO Discussion Paper 10
Abstract: 
This paper analyzes the role of Uruguay’s sharp minimum wage increases after 2004 amidst the country’s slight wage inequality decrease. We found that the minimum wage increase has contributed to the reduction of wage inequality for formal workers mainly. However, we also found a negative impact on employment outside the capital city, Montevideo, and observed a reduction in working hours. These results raise doubts about the effectiveness of minimum wage as a redistribution instrument in developing countries.
Subjects: 
minimum wage
wage inequality
instrumental variables
employment effect
difference in difference
JEL: 
J20
J31
J38
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.