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|dc.description.abstract||The minimum wage literature is very limited on empirical evidence for developing countries.This already limited literature is even more limited on the effects of the minimum wage in theinformal sector, where most of the poor are. Extending the understanding of minimum wageeffects both in developing countries and in particular in the informal sector is crucial if theminimum wage is to be used as a policy to help poor people in poor countries. This paperestimates wage and employment effects, accounting for sorting into the formal and informalsectors. The data used is a monthly Brazilian household survey from 1982 to 2000 atindividual and regional levels. The formal and informal sectors employment effects were bothfound to be negative, consistent with the presence of a large spike, substantial spillovereffects, and the associated compression effect in the wage distribution of both sectors. Thissuggests a downwards sloping labour demand curve in both sectors, challenging thestandard Two Sectors Model as inadequate to explain the effect of the minimum wage on theformal and informal sectors in Brazil and in Latin America more generally.||en_US|
|dc.publisher|||aInstitute for the Study of Labor (IZA) |cBonn||en_US|
|dc.relation.ispartofseries|||aIZA Discussion paper series |x1089||en_US|
|dc.title||The Effects of the Minimum Wage in the Formal and Informal Sectors in Brazil||en_US|
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