The effect of the minimum wage on labor market outcomes is controversial. There are
several studies for developed countries with mixed results, but there is a lack of evidence for
developing countries. We have access to a panel of workers from the unemployment insurance
system in Chile, which allows us to study the effect of four consecutive increases in minimum
wages using administrative data. We use several definitions of treatment and control groups,
finding consistently a small and positive effect of the minimum wage on formal wages, and
non-significant effects on formal employment.