The Minimum Wage: Major Market Distorter

Labor and employment attorney Ana María Cubillos wrote a column for El Heraldo on the impact of the minimum wage in the Colombian labor market. She highlights how the minimum wage, by affecting labor costs such as working hours and contributions to the Social Security System, becomes a double-edged sword that does not necessarily guarantee better income or working conditions. Using the example of the 2022 minimum wage increase, she argues that politically motivated decisions disconnected from rigorous macroeconomic factors perpetuate labor informality, as employers face increasing difficulties in maintaining and creating jobs.

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