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The effect of minimum wage on consumer bankruptcy

dc.creatorLegal, Diego
dc.creatorYoung, Eric
dc.date.accessioned2022-01-04T16:34:14Z
dc.date.available2022-01-04T16:34:14Z
dc.date.created2021-12-30
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dc.identifier.urihttps://repositorio.bcp.gov.py/handle/123456789/184
dc.descriptionEn el estudio, se utilizan las diferencias en los niveles de salario mínimo (MW, por sus siglas en inglés) fijado por los estados y las tasas de bancarrota de consumidores a nivel de condado de 1991 a 2017. Con estos datos, se estima el efecto de cambios en los salarios mínimos en la tasa de bancarrota de los consumidores haciendo uso de las discontinuidades de las políticas en las fronteras estatales. Se encontró que las tasas de bancarrota son significativamente más bajas en los condados que pertenecen a estados con mayor MW en comparación con los condados vecinos en el estado de menor MW. Un aumento del 10 por ciento en MW disminuye la tasa de bancarrota en alrededor de un 4 por ciento. Antes de la reforma en la ley de quiebras de consumidores en 2005, este efecto era casi dos veces mayor que para toda la muestra.
dc.description.abstractWe use cross-state differences in minimum wage levels (MW) and county-level consumer bankruptcy rates from 1991-2017 to estimate the effect of changes in minimum wages on consumer bankruptcy by exploiting policy discontinuities at state borders. We find that Chapter 7 bankruptcy rates are significantly lower in counties belonging to states with higher MW compared to neighboring counties in the lower MW state: a 10 percent increase in MW decreases the bankruptcy rate by around 4 percent. Before the 2005 Bankruptcy Reform, this effect was almost twice as large as for the entire sample.
dc.description.abstract
dc.format.extent41
dc.format.mimetypeapplication/pdf
dc.language.isoeng
dc.relation.ispartofDocumentos de Trabajo
dc.relation.ispartofseriesDocumento de Trabajo
dc.relation.isversionofDocumento de Trabajo; N° 26
dc.rights.urihttp://creativecommons.org/publicdomain/zero/1.0/
dc.subjectQUIEBRA
dc.subjectCONSUMIDOR
dc.subjectCRÉDITO SIN GARANTÍA
dc.subjectSALARIO MÍNIMO
dc.titleThe effect of minimum wage on consumer bankruptcy
dc.typeWorking Paper
dc.subject.jelJ65
dc.subject.jelE24
dc.subject.jelE44
dc.subject.jelJ22
dc.subject.jelJ31
dc.subject.jelJ64
dc.subject.jelJ65
dc.subject.keywordCONSUMER BANKRUPTCY
dc.subject.keywordUNSECURED CREDIT
dc.subject.keywordMINIMUM WAGE
dc.rights.accessRightsOpen Access
dc.type.spaDocumento de Trabajo
dc.type.hasversionPublished Version
dc.rights.ccCC0 1.0 Universal
dc.rights.spaAcceso abierto


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