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Applied Economics Letters Volume 4, 1997 - Issue 8
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Original Articles

Causality between the minimum wage and other wages

Francisco G. Carneiro Department of Economics, Keynes College, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP, UK
&
João Ricardo Faria Department of Economics, Keynes College, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP, UK; Department of Economics, Universidade de Brasilia, Brazil
Pages 507-510 | Received 09 Jul 1996, Published online: 03 Sep 2008
 
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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.

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