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dc.contributor.authorLemos, Saraen_US
dc.description.abstractIt is well established in the international literature that minimum wage increases compress thewages distribution. Firms respond to these higher labour costs by reducing employment,reducing profits, or raising prices. While there are hundreds of studies on the employmenteffect of the minimum wage, there is less than a handful studies on its profit effects, and onlya couple of dozen studies on its price effects. Not only is the literature scanty on the minimumwage price effects, but also it lacks a survey on that. This survey represents an importantcontribution to the literature because it summarizes and critically compares over twenty priceeffect studies, providing a benchmark in the literature. This survey further contributes to theliterature by offering an input to the recent debate over the direction of employment effects ofthe minimum wage. With employment and profits not significantly affected, higher prices is anobvious response to a minimum wage increase. Moreover, this survey also contributes to theliterature by extending the current understanding on the minimum wage as a policy againstinequality and poverty. If the minimum wage does not cause disemployment but causesinflation, it might hurt rather than aid the poor, who disproportionately suffer from inflation.en_US
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen_US
dc.relation.ispartofseries|aIZA Discussion paper series |x1072en_US
dc.subject.keywordminimum wageen_US
dc.subject.keywordwage effecten_US
dc.subject.keywordemployment effecten_US
dc.subject.keywordprice effect informal sectoren_US
dc.subject.keywordcost shocken_US
dc.titleThe Effect of the Minimum Wage on Pricesen_US
dc.typeWorking Paperen_US

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