Earnings Inequality and the Minimum Wage: Evidence from Brazil
By Niklas Engbom, Christian Moser. Social Science Research Network, 2017
221 citations recorded by the source corpus.
Increases in the minimum wage can substantially reduce earnings inequality. To demonstrate this, we combine administrative and survey data with an equilibrium model of the Brazilian labor market. We find that a 128 percent increase in the real minimum wage in Brazil between 1996 and 2018 had far-reaching spillover effects on wages higher up in the distribution. The increased minimum wage accounts for 45 percent of a large fall in earnings inequality over this period. At the same time, the effects of the minimum wage on employment and output are muted by reallocation of workers toward more productive firms.. (JEL D31, E23, E24, J31, J38, O15)
Subfields: Economics and Econometrics, Sociology and Political Science
View Paper: https://www.semanticscholar.org/paper/195d0d98f776fc2542ed5961c96846cda7ac8967
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In Economics and Econometrics
- Thibaut Lamadon
- Elena Manresa
- S. Bonhomme
- Ellora Derenoncourt
- Claire Montialoux
- Stanislav Volgushev
- Jiaying Gu
- Alan Manning
In Sociology and Political Science
- Thibaut Lamadon
- Elena Manresa
- S. Bonhomme
- Ellora Derenoncourt
- Claire Montialoux
- Stanislav Volgushev
- Jiaying Gu
- Liangjun Su
Citations in the corpus
- Minimum Wages and Racial Inequality* (2020, background): “, 2018) or in foreign countries (e.g., Harasztosi and Lindner, 2019; Engbom and Moser, 2018), and to a burgeoning literature on bunching estimation applied to the minimum wage (Cengiz et al.”
- A Distributional Framework for Matched Employer Employee Data (2019, background): “Abowd, Kramarz, Pérez-Duarte, and Schmutte (2015), Shephard (2011), and Engbom and Moser (2015) have evaluated wage posting models empirically.”