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The lighthouse effect and beyond

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dc.contributor.authorBoeri, Tito
dc.contributor.authorGaribaldi, Pietro
dc.contributor.authorRibeiro, Marta
dc.date.accessioned2013-07-03T08:37:25Z
dc.date.available2013-07-03T08:37:25Z
dc.date.issued2011
dc.description.abstractA large body of empirical literature indicates that, contrary to predictions from economic theory, wages in the informal sector increase after a minimum wage hike. This phenomenon was so far explained as a byproduct of a signal (a lighthouse) conveyed by statutory minima to wage setting in the informal sector. A simple matching model shows that an increase in wages in the informal sector may also be induced by significant sorting and composition effects between the formal and the shadow sectors in the aftermath of the increase in the minimum wage. Using data on Brazil, we find that sorting accounts for at least one third of the increase in average wages in the informal sector after a minimum wage hike. This contribution of endogenous sorting to wage dynamics in the informal sector is also increasing over time.por
dc.identifier.citationBOERI, Tito; GARIBALDI, Pietro; RIBEIRO, Marta - The Lighthouse Effect and Beyond. Review of Income and Wealth. ISSN 1475-4991. Series 57, Special Issue, May (2011), p. S54-S58por
dc.identifier.doi10.1111/j.1475-4991.2011.00455.x
dc.identifier.urihttp://hdl.handle.net/10400.14/11811
dc.language.isoengpor
dc.peerreviewedyespor
dc.publisherBlackwell Publishingpor
dc.subjectMinimum wagepor
dc.subjectLighthouse effectpor
dc.subjectSortingpor
dc.titleThe lighthouse effect and beyondpor
dc.typejournal article
dspace.entity.typePublication
rcaap.rightsrestrictedAccesspor
rcaap.typearticlepor

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