An analysis of the effects of the minimum wage automatic adjustments on inflation
This project aims to analyze the mechanisms of transmission of the automatic adjustment of the minimum wage to inflation in light of the conflict of income distribution between workers and entrepreneurs. The base literature is the original works of Keynes and other works within the Post-Keynesian theoretical framework, including those based on Kalecki. In order to measure the impact of the minimum wage policy on inflation, the strategy is the use of the Generalized Moments Method (GMM). The study applies to the Brazilian economy between 2011 and 2018. The period choice is due to the fact that the policy of valorization of the minimum wage was transformed into law in 2011.