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Minimum Wage Effects on Wages and Employment: Evidences from Time-Series and Longitudinal Data

This paper reports analysis of minimum wage on Brazilian labor market combining micro longitudinal data and aggregated time-series data. After the analysis of the minimum wage effects on Brazilian wage distribution based on micro data, the effects on employment level and composition (formal X informal) were identified for both, time-series and longitudinal data. The results show a significant effect of minimum wage on wage distribution. Regarding employment the aggregate effects points towards a decrease in employment level and also in the formal share of those employed. However the magnitudes are not striking. In fact the micro data analysis suggests that these effects vary considerably according to the date of the minimum readjust.