Decline in Wage Inequality in Brazil : A Survey
In the last decades, Brazil experienced a historical decline in its wage inequality level, particularly in the first decade of the 21st century. This paper reviews the literature that attempted to explain the observed pattern. It considers mechanis...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/567751576782707151/Decline-in-Wage-Inequality-in-Brazil-A-Survey http://hdl.handle.net/10986/33104 |
| Summary: | In the last decades, Brazil experienced
a historical decline in its wage inequality level,
particularly in the first decade of the 21st century. This
paper reviews the literature that attempted to explain the
observed pattern. It considers mechanisms related to the
supply and demand for labor, as well as institutional
factors. The paper argues that the favorable economic
environment in the period, combined with increases in the
minimum wage, higher formalization, and a larger supply of
skilled workers led to a compression in wages. However, some
aspects of the decline in wage inequality are still
unanswered, such as the causes behind a reduction in the
experience premium and interfirm payment heterogeneity, as
well as the exact role of technological changes. The paper
concludes by discussing future trends in wage inequality in Brazil. |
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