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Estimating the effects of the minimum wage in a developing country: A density discontinuity design approach

机译:估计最低工资在发展中国家的影响:密度不连续性设计方法

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This paper proposes a framework to identify the effects of the minimum wage on the joint distribution of sector and wage in a developing country. I show how the discontinuity of the wage distribution around the minimum wage identifies the extent of noncompliance with the minimum wage policy, and how the conditional probability of sector given wage recovers the relationship between latent sector and wages. I apply the method in the "PNAD," a nationwide representative Brazilian cross-sectional dataset for the years 2001-2009. The results indicate that the size of the informal sector is increased by around 39% compared to what would prevail in the absence of the minimum wage, an effect attributable to (i) unemployment effects of the minimum wage on the formal sector and (ii) movements of workers from the formal to the informal sector as a response to the policy.
机译:本文提出了一个框架,以确定最低工资对发展中国家部门和工资的联合分配的影响。我展示了围绕最低工资的工资分配的不连续性如何识别不遵守最低工资政策的程度,以及给定工资的部门的条件概率如何恢复潜在部门与工资之间的关系。我在“ PNAD”中使用了该方法,“ PNAD”是2001年至2009年全国范围内具有代表性的巴西横截面数据集。结果表明,与没有最低工资的情况相比,非正规部门的规模增加了约39%,这是由于(i)最低工资对正规部门的失业影响和(ii)工人从正规部门转移到非正规部门的行动,作为对政策的回应。

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