Jaramillo, M. y López, K. (2006). ¿Cómo se ajusta el mercado de trabajo ante cambios en el salario mínimo en el Perú?: una evaluación de la experiencia de la última década (Documento de Trabajo N° 50). Lima: GRADE.

After reaching a historic peak in 1986, the minimum wage fell sharply, along with the average level of wages, until the early 1990s. Since the mid-1990s, however, it has risen sharply, approaching the average level of wages for both unskilled and informal workers. This study describes the institutional framework of the minimum wage in the Peruvian labour market and analyses its relationship with the distribution of labour income for different labour market groups (unskilled workers, informal workers, women and youth). It also uses recent variations to identify the effects of a rise in wages and employment across the distribution of labour income.

Unlike in other Latin American countries, in Peru the effect of the minimum wage on wages is very limited, affecting only formal sector workers whose wage level is around the minimum wage. On the other hand, broader and negative effects on employment are found in both the formal and informal sectors.