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UID:026b72fe4e5653abcdfcbe6ffc41f878
CATEGORIES:Seminars
CREATED:20240916T123609
SUMMARY:Claire Montialoux - Sciences Po
DESCRIPTION;ENCODING=QUOTED-PRINTABLE:\n\nMinimum Wages and the Gradients of Informality” with Ellora Derenoncour
 t, François Gérard and Lorenzo Lagos\n\n\nAbstract:\nThis paper studies how
  the minimum wage affects wages and employment in the informal sector in Br
 azil, a country where 40% of the workforce is informal and where the real m
 inimum wage doubled between 1999 and 2009. We develop a methodology to esti
 mate the pass-through of minimum wage increases into the informal sector, a
 nd we measure and report the own-wage reallocation elasticity -- the percen
 t shift out of formal employment associated with a 1 percent increase in wa
 ges. Using detailed labor force surveys and administrative data with inform
 ation on formality status, we uncover a full pass-through of minimum wage i
 ncreases into the wages of informal workers employed in formal firms, who a
 ccount for about half of all informal employees. As a result of this full p
 ass-through, we find a small formal-to-informal reallocation elasticity wit
 h respect to the formal wage of 0.28.  Our findings illustrate how min
 imum wage increases can have large effects on living standards for the hund
 reds of millions of low-income people working in the informal sector in dev
 eloping countries.\n
DTSTAMP:20260421T083739Z
DTSTART:20250508T163000Z
DTEND:20250508T180000Z
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