MINIMUM WAGE VALORIZATION POLICY AND ITS RELATION TO UNEMPLOYMENT

Abstract

The study seeks to identify the link between an increase in minimum wage
and the probability of the individual moving from an employment situation to an unemployed condition, as well as seeking to provide subsidy to the formulation of public
policies. The period chosen was from 2011 to 2015, after a new minimum methodology
readjustment law, and a one-year impact analysis based on data from the Monthly Employment Survey (PME). To do so, use the propensity score matching and differencein-difference methods. The treatment group in the form of issue receive the old and the
new minimum wage. Those who want between 1.5 and 2.5 times the new minimum
wage, in turn, belong to the control group. It was observed that, in the transition from
2011 to 2012 and 2012 to 2013, the increase in the minimum wage may have contributed to the increase in the probability of an individual being unemployed. This fact was not observed for the other periods analyzed.