No abstract

The Brazilian economy has long relied on the minimum wage, having first implemented a minimum in 1940. Shortly after taking office in 2003, Brazil's President raised the minimum wage by 20% and promised to double the value of the minimum wage before his term ends in 2006. The usual rationale for minimum wage increases is to bring about beneficial changes in the income distribution, by raising incomes of poor and low-income families. The goal of this paper is to evaluate the efficacy of the minimum wage in Brazil in bringing about these changes in the income distribution. We examine data drawn from Brazil's major metropolitan areas, studying the years after Brazil's hyper-inflation ended. The estimates provide no evidence that minimum wages in Brazil lift family incomes at the lower points of the income distribution; if anything some of the evidence points to adverse effects on lower-income families. D 2005 Published by Elsevier B.V.

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This paper first provides an overview of the levels of minimum wages in Latin America and their true impact on the distribution of wages using both numerical measures and kernel density plots. It identifies "numeraire" effects higher in the wage distribution and "lighthouse" or reference effects in the unregulated or "informal" sector. The final section then employs panel employment data from Colombia, a country where minimum wages seem high and very binding, to quantify the effects of an increase on wages and employment. The evidence suggests that in the Latin American context, the minimum wage has impacts beyond those usually contemplated in the advanced country literature.

Although there is a general agreement in the literature of the importance of social-emotional skills for labor market success, there is little consensus on the specific skills that should be acquired or how and when to teach them. The psychology, economics, policy research, and program implementation literatures all touch on these issues, but they are not sufficiently integrated to provide policy direction. The objective of this paper is to provide a coherent framework and related policies and programs that bridge the psychology, economics, and education literature, specifically that related to skills employers value, non-cognitive skills that predict positive labor market outcomes, and skills targeted by psycho-educational prevention and intervention programs. The paper uses as its base a list of social-emotional skills that employers value, classifies these into eight subgroups (summarized by PRACTICE), then uses the psychology literature-drawing from the concepts of psycho-social and neuro-biological readiness and age-appropriate contexts-to map the age and context in which each skill subset is developed. The paper uses examples of successful interventions to illustrate the pedagogical process. The paper concludes that the social-emotional skills employers value can be effectively taught when aligned with the optimal stage for each skill development, middle childhood is the optimal stage for development of PRACTICE skills, and a broad international evidence base on effective program interventions at the right stage can guide policy makers to incorporate social-emotional learning into their school curriculum. Developing Social-Emotional Skills for the Labor Market:The PRACTICE Model