Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/58885
Authors: 
Cerejeira, João
Kızılca, Kemal
Portela, Miguel
Sá, Carla
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6370
Abstract: 
Using linked employer-employee data for Portugal, we explore an amendment to the minimum wage law which increased from 75% to 100% of the full minimum wage applied to employees younger than 18. Our results show a widening of the gender wage gap following the amendment: the wage gap for minors increased 2.7 percentage points more than for other groups. This change was mainly determined by a redistribution of fringe benefits and overtime payments. We discuss three possible sources of redistribution: (i) a change in the skill composition of the working males and females after the increase in the minimum wage, (ii) industrial differences in response to the changes in the wage floor, and (iii) discrimination. Estimations support the second channel as the main contributing factor, while possible discrimination effects cannot be eliminated.
Subjects: 
minimum wage
overtime payments
fringe benefits
gender wage gap
minors
JEL: 
J31
J32
J71
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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