{"title":"The effects of minimum wage on education acquisition in Brazil","authors":"Larissa da Silva MARIONI","doi":"10.1111/ilr.12439","DOIUrl":null,"url":null,"abstract":"<p>This article investigates the impact of the absolute and relative minimum wages on skill premiums and on-the-job education investments. It draws on administrative data on the Brazilian formal sector for 2006-13, exploring price level variations across states and time to identify the effects of the national minimum wage. Findings indicate that the absolute minimum wage reduces the skill premium and, on average, negatively affects educational acquisition, particularly at the bottom of the wage distribution. Conversely, the relative minimum wage increases the skill premium for top levels of education and, on average, has no significant effect on education investments, although there is some evidence for heterogeneous effects across the distribution.</p>","PeriodicalId":47216,"journal":{"name":"International Labour Review","volume":"163 4","pages":"545-573"},"PeriodicalIF":2.8000,"publicationDate":"2024-11-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Labour Review","FirstCategoryId":"91","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/ilr.12439","RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
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Abstract
This article investigates the impact of the absolute and relative minimum wages on skill premiums and on-the-job education investments. It draws on administrative data on the Brazilian formal sector for 2006-13, exploring price level variations across states and time to identify the effects of the national minimum wage. Findings indicate that the absolute minimum wage reduces the skill premium and, on average, negatively affects educational acquisition, particularly at the bottom of the wage distribution. Conversely, the relative minimum wage increases the skill premium for top levels of education and, on average, has no significant effect on education investments, although there is some evidence for heterogeneous effects across the distribution.
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The International Labour Review is the world"s leading multidisciplinary journal of labour market institutions and economics. Its aim is to advance academic research and inform policy debate and decision-making in these fields by bringing together the original thinking of lawyers, economists, sociologists, political scientists and industrial relations specialists on a broad range of labour market policy and social protection concerns. The International Labour Review also features concise reports on current developments considered to be of particular interest to those working in these fields and reviews of recent major publications. It is committed to an editorial policy that combines accessibility with rigorous, insightful analysis and the highest scholarly standards.
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