Similarly, the rapid increase in minimum wages in Indonesia during the 1990s, where the statutory minimum wage doubled in real terms between 1990 and 1996, had sizeable negative effects on manufacturing employment, reducing employment growth at plant level by an estimated 6% (Harrison and Scorse, 2010). But such large changes in minimum wages are the exception rather than the rule. Evidence, arising especially from Latin America, shows that increases in minimum wages raise rather than depress wages in the informal sector.13 In Brazil, this is known as the efeito faro 1 or “lighthouse effect”.