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Informality and the effects of minimum wage policy in developing countries
Summary by voxdev.org
1 Articles
1 Articles
Informality and the effects of minimum wage policy in developing countries
Increases in Brazil’s national minimum wage between 2000 and 2009 moved the country from a regime of low minimum wage bite to one of high bite. This column exploits variation in the bite of the reform across states and industries to reveal immediate and substantial passthrough of the minimum wage for informal workers working in formal firms, and a smaller passthrough that takes several years to materialise for informal workers employed in inform…
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