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The effect of minimum wages on rural employment : theory and evidence from Colombia

Author

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  • Carlos A. Mesa-Guerra

Abstract

Este artículo evalúa el efecto del largo período de convergencia entre 1974 y 1984 del salario mínimo urbano y rural en Colombia. Para ayudar en la interpretación de los hallazgos empíricos, se desarrolla un modelo simple de dos sectores para el mercado laboral rural que es capaz de explicar la presencia de un gran sector informal. Utilizando un diseno de diferencias en diferencias y datos de los censos de población, se estima el impacto del aumento del salario mínimo en el sector rural sobre el nivel de empleo. Los resultados empíricos muestran un aumento de entre 4% y 8% en la tasa de ocupación en los municipios afectados por la política, en relación con el grupo de control. Sin embargo, los resultados sugieren que el aumento de la demanda de mano de obra se concentró en empleo no calificado. Adicionalmente se presenta evidencia sobre efectos heterogéneos por subgrupos de población.

Suggested Citation

  • Carlos A. Mesa-Guerra, 2020. "The effect of minimum wages on rural employment : theory and evidence from Colombia," Coyuntura Económica, Fedesarrollo, vol. 50(1-2), pages 169-209, December.
    • Handle: RePEc:col:000438:018622
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    File URL: http://hdl.handle.net/11445/4054
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    More about this item

    Keywords

    Salario Mínimo; Empleo Rural; Informalidad; Colombia;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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