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Minimum Wages in Latin America: The Controversy about Their Likely Economic Effects

  • Luis A. Riveros
Chapter

Abstract

The minimum wage (MW) has traditionally been an important policy instrument in Latin America. Periodic revision of its level and the maintenance of suitable enforcement machinery have been widely deemed to be crucial in the attempt to attain a better income distribution. But many others consider MWs a highly distorting labor market policy, with few if any positive effects. In the context of notable social and political tensions and the presence of significant stabilization-cum-adjustment programs, and with countries hoping to consolidate their trade openings through commercial trade agreements, the role of MWs occupies a prominent role in the economic debate.

Keywords

Minimum Wage Latin American Country Informal Sector Formal Sector Unskilled Labor 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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© Springer Science+Business Media New York 2001

Authors and Affiliations

  • Luis A. Riveros

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