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Report

Minimum Wage and the Labor Market: National and International Evidence and Implications for Brazil

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Author: Leandro da Rocha, Valdemar Neto, Pedro Maia, Fernando Veloso e Paulo Tafner

Edition: 1st

Published in: August 2026

The report “Minimum Wage and the Labor Market: National and International Evidence and Implications for the Brazilian Case” analyzes the role of the minimum wage in the labor market based on a review of the economic literature and a comparison of the relative position of the minimum wage in Brazil and in other countries.

The study gathers evidence on the effects of the minimum wage on different dimensions, such as inequality, poverty, employment, informality, productivity, and public finances. In addition, it calculates the Kaitz index, which measures the ratio of the minimum wage to the median or average wage, and uses this indicator to examine how the relative position of the wage floor varies across countries and Brazilian states.

The results show that Brazil ranks relatively high when the minimum wage is compared with the median wage and that the relative intensity of the wage floor varies considerably across Brazilian states. The report thus highlights the importance of considering not only the real value of the minimum wage but also its position in the wage distribution and the differences across local labor markets.

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