Should the minimum wage be raised?
Hugo Ñopo, senior researcher at GRADE, discussed in Altavoz President Pedro Pablo Kuczynski’s pronunciation on the minimum vital remuneration.
According to Hugo, the minimum wage is a type of price control that distorts economies. In addition, given that 49% of workers receive wages below the minimum, “What will be the compliance of the regulation on minimum wages?”.
Regarding the impact of the minimum wage on formal employment, Hugo states that there is an impact, albeit small: “Why is the impact small? Because people do not comply with the legislation?”.
Finally, Hugo recommended improving the functioning of the labor market to face the problem. “(The legislation)” is so baroque that for a microentrepreneur it is almost impossible to pay attention to the entire legislative-labor picture, so it ends up evading it. If someone really wants to respect labor legislation, they have to hire a lawyer, an accountant and put together an entire team of human resources, and that is already too onerous, unattainable for a small or micro firm “
