2016
DOI: 10.1111/ilr.12007
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Distribution effects of the minimum wage in four Latin American countries: Argentina, Brazil, Chile and Uruguay

Abstract: This article provides a comparative analysis of the distribution effects of the increase in the real value of the minimum wage in Latin America during the 2000s in four Latin American countries: Argentina, Brazil, Chile and Uruguay. Using semiparametric techniques to estimate counterfactual density functions, the authors find that the increase in the minimum wage had an equalizing effect in Argentina, Brazil and Uruguay, but not in Chile. This increase accounted for a considerable part of the decline in wage i… Show more

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Cited by 42 publications
(30 citation statements)
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“…Other studies have pointed out that both the implementation of income policies immediately after the macroeconomic crisis in 2001/02 and the strengthening of labour institutions might have also played a part in reducing the income gap among workers with different skills and educational levels. Maurizio and Vázquez (2016) and Casanova and Alejo (2015) have highlighted the strengthening of the minimum wage and collective bargaining as contributing factors to the improvement of wage inequality, both in Argentina and in other countries in the region.…”
Section: Literature Reviewmentioning
confidence: 99%
“…Other studies have pointed out that both the implementation of income policies immediately after the macroeconomic crisis in 2001/02 and the strengthening of labour institutions might have also played a part in reducing the income gap among workers with different skills and educational levels. Maurizio and Vázquez (2016) and Casanova and Alejo (2015) have highlighted the strengthening of the minimum wage and collective bargaining as contributing factors to the improvement of wage inequality, both in Argentina and in other countries in the region.…”
Section: Literature Reviewmentioning
confidence: 99%
“…The combination of these two processes multiplied their individual effects as more workers began to receive at least the minimum wage (through formalization) and their income was increased further by rising real minimum wages. Rising minimum wages also affected informal workers being paid close to the minimum wage, through what is known as the "lighthouse effect," as well as employees whose wages were indexed to (low) multiples of the minimum wage and thus got readjusted (see Maurizio and Vázquez, 2016). Furthermore, a set of social benefits and lowvalue public pensions was indexed to the minimum wage, increasing the latter's impact on the economy (Orair and Gobetti, 2010).…”
Section: The Drivers Of Redistributionmentioning
confidence: 99%
“…En términos generales, la estabilidad macroeconómica y las condiciones externas han favorecido a la región en el período. En términos más específicos, en las economías del Cono Sur, por ejemplo, la institucionalidad laboral a través del salario mínimo y la negociación colectiva ha contribuido de manera significativa (véase, por ejemplo, Maurizio y Vázquez, 2016). En las economías de América Central, las fuentes de ingresos no laborales y, en particular, las remesas, han tenido un impacto igualador en algunos casos (Acosta y otros, 2008).…”
Section: Desigualdad a Nivel Nacionalunclassified