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Causality between the minimum wage and other wages

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  • Francisco Carneiro
  • Joao Ricardo Faria

Abstract

The paper analyzes the effects of the minimum wage over the other wages in Brazil using a bargaining framework. The key result is that the minimum wage precedes the market wage in the period 1980-85 while there is simultaneous determination in the period 1986-93.

Suggested Citation

  • Francisco Carneiro & Joao Ricardo Faria, 1997. "Causality between the minimum wage and other wages," Applied Economics Letters, Taylor & Francis Journals, vol. 4(8), pages 507-510.
    • Handle: RePEc:taf:apeclt:v:4:y:1997:i:8:p:507-510
    DOI: 10.1080/758536635
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    References listed on IDEAS

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    1. Barro, Robert J. & Gordon, David B., 1983. "Rules, discretion and reputation in a model of monetary policy," Journal of Monetary Economics, Elsevier, vol. 12(1), pages 101-121.
    2. Carruth, Alan A & Oswald, Andrew J, 1987. "On Union Preferences and Labour Market Models: Insiders and Outsi ders," Economic Journal, Royal Economic Society, vol. 97(386), pages 431-445, June.
    3. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    4. Manning, Alan, 1987. "An Integration of Trade Union Models in a Sequential Bargaining Framework," Economic Journal, Royal Economic Society, vol. 97(385), pages 121-139, March.
    5. Jean Baldwin Grossman, 1983. "The Impact of the Minimum Wage on Other Wages," Journal of Human Resources, University of Wisconsin Press, vol. 18(3), pages 359-378.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Sara Lemos, 2006. "Anticipated effects of the minimum wage on prices," Applied Economics, Taylor & Francis Journals, vol. 38(3), pages 325-337.
    2. Fernando Augusto Mansor De Mattos & Natassia Nascimento, 2016. "Aspectos Históricos Dos Efeitos Da Evolução Do Salário Mínimo, Do Mercado De Trabalho E Da Estrutura Tributária Sobre O Perfil Distributivo Brasileiro Desde Meados Do Século Xx," Anais do XLIII Encontro Nacional de Economia [Proceedings of the 43rd Brazilian Economics Meeting] 033, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    3. Miguel N. Foguel & Lauro Ramos & Francisco Carneiro, 2015. "the Impacts of the Minimum Wage on the Labor Market, Poverty and Fiscal Budget in Brazil," Discussion Papers 0108, Instituto de Pesquisa Econômica Aplicada - IPEA.
    4. Roberto Coronado & Eduardo Saucedo, 2019. "Drug-related violence in Mexico and its effects on employment," Empirical Economics, Springer, vol. 57(2), pages 653-681, August.

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