This paper analyses the evolution of the minimum wage in Brazil after the Real Plan and its effects on the extreme poverty. Between 1994 and 2008, the minimum wage had an accumulated real increase of almost 110%, growing in relation to average income in the country. Currently, the minimum wage is about 40% of national average income. The article points to the reduction of the effectiveness of real increases of minimum wage as a means to reduce the extreme poverty. It is suggested to maintain the real value of the minimum wage and to concentrate the public expenditures in better focused social policies.
Minimum Wage; Poverty; Extreme Poverty
