Download Minimum Wages and Social Policy: Lessons from Developing by Wendy Cunningham PDF

By Wendy Cunningham

Delivering proof from either special person state stories and homogenized facts around the Latin American and Caribbean sector, this e-book examines the effect of the minimal salary on wages, employment, poverty, source of revenue distribution and executive budgets within the context of a big casual region and predominantly unskilled workforces.

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Argentina (1918), Costa Rica (1934), Brazil (1938), Ecuador (1896—transport of kerosene and 1900—agricultural sector), Uruguay (1923—agricultural sector), and Peru (1916—indigenous peoples, 1922—maritime workers, 1937—home workers) were also early leaders in implementing some limited occupation-specific version of a minimum wage (Starr 1993). 3. Various models of household dynamics suggest that income is not shared equally among household members. Unlike the Mincer (1962) and Becker Context and Framework 17 (1976) models, where the household head (the person with the most power in the household) is altruistic and ensures an equitable distribution of household resources, these alternative models assume a cooperative or even an uncooperative bargaining game where the outcome is not necessarily Pareto Optimal.

B. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. 1 Source: Kristensen and Cunningham (2006). Note: Omitted categories are, respectively, age 20–54, male, formal employee, and secondary school or above. a. data were not available to generate the statistic. A value greater than 1 indicates that the reference group is overrepresented among the minimum wage population. Paraguay, Peru, and the República Bolivariana de Venezuela, those without any formal education are a larger share of the minimum wage population than the general working population.

5– 4 4– 4. 5 4. 5– 5. 5 5. 5– 7 0 wage, before mw increase, stated in terms of the minimum wage (c) Colombia 10 15 20 25 30 35 40 45 by wage centile 50 60 70 80 90 Source: Cunningham and Siga (2006) for Mexico and Brazil; Arango (2004) for Colombia. Note: A colored bar indicates the coefficient is statistically significant at the 5% level, a white bar indicates that it is not. wage workers, thus encouraging them to continue exerting a level of effort above the minimum effort. The Level of the Minimum Wage Determines Whether It Increases or Decreases Wage Inequality An increase in the minimum wage reduces wage inequality in countries with a low relative minimum wage.

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