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The controversy over the minimum wage and the wage rate in the Brazilian economy: new evidence

ABSTRACT

A few articles appeared recently in the Brazilian economic literature discussing the role played by the minimum wage in the determination of the wage rate in the formal sector of the economy. This paper tries to shed some light on the discussion through the utilization of new empirical evidence. We end up concluding that minimum wage is very important to determine the wage rate in Brazil.

KEYWORDS:
Wage; minimum wage; wage structure

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