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Analysis of minimum wage impacts on income distribution in the Brazilian agricultural sector

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Régis Borges de Oliveira
Total Authors: 1
Document type: Doctoral Thesis
Press: Campinas, SP.
Institution: Universidade Estadual de Campinas (UNICAMP). Instituto de Economia
Defense date:
Examining board members:
Rodolfo Hoffmann; Alexandre Gori Maia; Lilian Maluf de Lima Cunha; Alexandre Nunes de Almeida; Henrique Dantas Neder
Advisor: Rodolfo Hoffmann

This study aims to analyze the impact of the minimum wage on the wage distribution in the Brazilian¿s agricultural sector over the period 1992-2012. More precisely, we study the effect of the minimum wage policy in determining the wage of different categories of agricultural workers, as follows: permanents employees with or without register, temporaries employees with or without register and self-employed workers. Over the past 18 years the real value of the minimum wage has been increased systematically with important effects in the labor market. At the same time, the Brazilian economy has experienced an unprecedented tendency, which combined economic growth with reduced inequality when analyzing both the labor income and the per capita household income. Empirical evidences have showed that the minimum wage was one of the factors that contributed to the fall on inequality, but its effect is different when considering the agricultural employees' categories. Using descriptive statistics and two non-parametric methods (kernel density functions and quantile regressions) applied to the National Household Sample Survey (PNAD/IBGE) data, this work shows that for unregistered workers in the agricultural sector the real minimum wage growth has increased inequality, as far as it affects more intensely the upper tail of the wage distribution. We highlight the necessity of increasing the formalization among agricultural employees, ensuring that the poorest workers also be benefited by the real minimum wage increase (AU)

FAPESP's process: 10/18033-4 - Analysis of the impact of minimum wage on income distribution in Brazilian agriculture, for employees and self employed
Grantee:Régis Borges de Oliveira
Support type: Scholarships in Brazil - Doctorate