Seminario: "The Impact of the Minimum Wage on the Destruction and Creation of Products"

Autor(es): Roberto Alvarez FEN y Lucas Navarro UAH Presenta: Lucas Navarro (UAH) Lugar y hora: Miércoles 17 de Mayo de 2017, 13:00 hrs. Sala P 301, Edificio Placa (Diagonal Paraguay 257)
We study the impact of changes in the legal minimum wage on the creation and destruction of products at the firm level. This can be a relevant way to increase firm productivity and to explain why increases in the minimum wage may have minor effects on employment. Our identification strategy exploits as a quasi-experiment a large and 3-year predetermined increase in minimum wages during 1998-2000 in Chile and the differences in products exposure to these changes. Our main results indicate that increases in the minimum wage raise the destruction of products that are more unskilled labor–intensive and that firms introduce products that are more intensive in skilled workers. The impact is relevant. An annual nominal increase of about 10% in the minimum wage as occurred in this period increases the probability of dropping unskilled labor products in 1.4% and reduce the probability of creating unskilled labor products in 1.1%. Our results are robust to sample selection issues, to control for confounding factors and to the use of alternative definitions of exposure.

Datos del Evento

Fecha de inicio:
17 de Mayo, 2017 | 13:00 hrs.

Fecha de término
17 de Mayo, 2017 | 14:00 hrs.