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...

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Main Authors: Firpo, Sergio, Portella, Alysson
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/567751576782707151/Decline-in-Wage-Inequality-in-Brazil-A-Survey
http://hdl.handle.net/10986/33104
id okr-10986-33104
recordtype oai_dc
spelling okr-10986-331042022-09-20T00:12:45Z Decline in Wage Inequality in Brazil : A Survey Firpo, Sergio Portella, Alysson WAGE INEQUALITY INEQUALITY POVERTY SKILL PREMIUM INCOME DISTRIBUTION 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. 2019-12-27T16:37:33Z 2019-12-27T16:37:33Z 2019-12 Working Paper http://documents.worldbank.org/curated/en/567751576782707151/Decline-in-Wage-Inequality-in-Brazil-A-Survey http://hdl.handle.net/10986/33104 English Policy Research Working Paper;No. 9096 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
topic WAGE INEQUALITY
INEQUALITY
POVERTY
SKILL PREMIUM
INCOME DISTRIBUTION
spellingShingle WAGE INEQUALITY
INEQUALITY
POVERTY
SKILL PREMIUM
INCOME DISTRIBUTION
Firpo, Sergio
Portella, Alysson
Decline in Wage Inequality in Brazil : A Survey
geographic_facet Latin America & Caribbean
Brazil
relation Policy Research Working Paper;No. 9096
description 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.
format Working Paper
author Firpo, Sergio
Portella, Alysson
author_facet Firpo, Sergio
Portella, Alysson
author_sort Firpo, Sergio
title Decline in Wage Inequality in Brazil : A Survey
title_short Decline in Wage Inequality in Brazil : A Survey
title_full Decline in Wage Inequality in Brazil : A Survey
title_fullStr Decline in Wage Inequality in Brazil : A Survey
title_full_unstemmed Decline in Wage Inequality in Brazil : A Survey
title_sort decline in wage inequality in brazil : a survey
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/567751576782707151/Decline-in-Wage-Inequality-in-Brazil-A-Survey
http://hdl.handle.net/10986/33104
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