Uruguay’s Miracle: Redistribution and the Growth of Unionism
The second leftist government in Uruguay, elected in 2009, has deepened its pro-labor policies through Wage Councils and a tripartite system to fix the minimum wage for all occupational categories in all sectors of the economy. In doing so, it played a strategic role in promoting progressive income redistribution. In recent years real wages have grown by 4% per annum, and the minimum wage has increased by 250%. Previous to the arrival of the leftist government...