Ageing Poorly? : Accounting for the Decline in Earnings Inequality in Brazil, 1995-2012
The Gini coefficient of labor earnings in Brazil fell by nearly a fifth between 1995 and 2012, from 0.50 to 0.41. The decline in earnings inequality was even larger by other measures, with the 90-10 percentile ratio falling by almost 40 percent. Al...
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| Format: | Working Paper |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/848401490881734831/Ageing-poorly-accounting-for-the-decline-in-earnings-inequality-in-Brazil-1995-2012 http://hdl.handle.net/10986/26359 |
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okr-10986-263592021-06-08T14:42:48Z Ageing Poorly? : Accounting for the Decline in Earnings Inequality in Brazil, 1995-2012 Ferreira, Francisco H. G. Firpo, Sergio P. Messina, Julian INEQUALITY EARNINGS RIF REGRESSIONS GINI COEFFICIENT WAGE GAPS MINIMUM WAGE The Gini coefficient of labor earnings in Brazil fell by nearly a fifth between 1995 and 2012, from 0.50 to 0.41. The decline in earnings inequality was even larger by other measures, with the 90-10 percentile ratio falling by almost 40 percent. Although the conventional explanation of a falling education premium did play a role, an RIF regression-based decomposition analysis suggests that the decline in returns to potential experience was the main factor behind lower wage disparities during the period. Substantial reductions in the gender, race, informality and urban-rural wage gaps, conditional on human capital and institutional variables, also contributed to the decline. Although rising minimum wages were equalizing during 2003-2012, they had the opposite effects during 1995-2003, because of declining compliance. Over the entire period, the direct effect of minimum wages on inequality was muted. 2017-04-13T17:20:55Z 2017-04-13T17:20:55Z 2017-03 Working Paper http://documents.worldbank.org/curated/en/848401490881734831/Ageing-poorly-accounting-for-the-decline-in-earnings-inequality-in-Brazil-1995-2012 http://hdl.handle.net/10986/26359 English en_US Policy Research Working Paper;No. 8018 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Brazil |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
INEQUALITY EARNINGS RIF REGRESSIONS GINI COEFFICIENT WAGE GAPS MINIMUM WAGE |
| spellingShingle |
INEQUALITY EARNINGS RIF REGRESSIONS GINI COEFFICIENT WAGE GAPS MINIMUM WAGE Ferreira, Francisco H. G. Firpo, Sergio P. Messina, Julian Ageing Poorly? : Accounting for the Decline in Earnings Inequality in Brazil, 1995-2012 |
| geographic_facet |
Latin America & Caribbean Brazil |
| relation |
Policy Research Working Paper;No. 8018 |
| description |
The Gini coefficient of labor earnings
in Brazil fell by nearly a fifth between 1995 and 2012, from
0.50 to 0.41. The decline in earnings inequality was even
larger by other measures, with the 90-10 percentile ratio
falling by almost 40 percent. Although the conventional
explanation of a falling education premium did play a role,
an RIF regression-based decomposition analysis suggests that
the decline in returns to potential experience was the main
factor behind lower wage disparities during the period.
Substantial reductions in the gender, race, informality and
urban-rural wage gaps, conditional on human capital and
institutional variables, also contributed to the decline.
Although rising minimum wages were equalizing during
2003-2012, they had the opposite effects during 1995-2003,
because of declining compliance. Over the entire period, the
direct effect of minimum wages on inequality was muted. |
| format |
Working Paper |
| author |
Ferreira, Francisco H. G. Firpo, Sergio P. Messina, Julian |
| author_facet |
Ferreira, Francisco H. G. Firpo, Sergio P. Messina, Julian |
| author_sort |
Ferreira, Francisco H. G. |
| title |
Ageing Poorly? : Accounting for the Decline in Earnings Inequality in Brazil, 1995-2012 |
| title_short |
Ageing Poorly? : Accounting for the Decline in Earnings Inequality in Brazil, 1995-2012 |
| title_full |
Ageing Poorly? : Accounting for the Decline in Earnings Inequality in Brazil, 1995-2012 |
| title_fullStr |
Ageing Poorly? : Accounting for the Decline in Earnings Inequality in Brazil, 1995-2012 |
| title_full_unstemmed |
Ageing Poorly? : Accounting for the Decline in Earnings Inequality in Brazil, 1995-2012 |
| title_sort |
ageing poorly? : accounting for the decline in earnings inequality in brazil, 1995-2012 |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/848401490881734831/Ageing-poorly-accounting-for-the-decline-in-earnings-inequality-in-Brazil-1995-2012 http://hdl.handle.net/10986/26359 |
| _version_ |
1764461787652030464 |