EFFECTS OF THE MINIMUM WAGE POLICY ON THE METROPOLITAN LABOR MARKET: AN EMPIRICAL ANALYSIS FROM VECTORS AUTOREGRESSIVE (VAR) - (2003-2015)

ABSTRACT

In order to verify the effects of the minimum wage policy has on the Brazilian metropolitan labor market, this study adds to check their interrelation with variables such as activity rate, degree of informality and unemployment rate in four Regions metropolitan (Recife, Porto Alegre, Belo Horizonte and São Paulo), separately, from January 2003 to March 2015. By using the vector autoregression method (VAR), the results show that the relationship between the minimum wage and activity rate occurred with labor ticket in just a study area. In the other regions are observed both a downward trend in the degree of informality as an increase in the unemployment rate.

KEYWORDS:
minimum wage; labor market; VAR