Please use this identifier to cite or link to this item: https://repositorio.insper.edu.br/handle/11224/4238
Type: Artigo Científico
Title: Labor Market Experience and Falling Earnings Inequality in Brazil: 1995–2012
Author: Firpo, Sergio Pinheiro
Ferreira, Francisco H. G.
Messina, Julián
Publication Date: 2021
Abstract: 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 other measures of earnings inequality was even larger, with the 90-10 percentile ratio falling by almost 40 percent. Applying micro-econometric decomposition techniques, this study parses out the proximate determinants of this substantial reduction in earnings inequality. Although a falling education premium did play a role, in line with received wisdom, this study finds that a reduction in the returns to labor market experience was a much more important factor driving lower wage disparities. It accounted for 53 percent of the observed decline in the Gini index during the period. Reductions in horizontal inequalities – the gender, race, regional and urban-rural wage gaps, conditional on human capital and institutional variables – also contributed. Two main factors operated against the decline: a greater disparity in wage premia to different sectors of economic activity, and the “paradox of progress”: the mechanical inequality-increasing effect of a more educated labor force when returns to education are convex.
Keywords (english terms): earnings inequality
Brazil
returns to experience
Language: Inglês
CNPq Area: Ciências Exatas e da Terra
Ciências Sociais Aplicadas
URI: https://academic.oup.com/wber/article/36/1/37/6188498?searchresult=1
Copyright: O INSPER E ESTE REPOSITÓRIO NÃO DETÊM OS DIREITOS DE USO E REPRODUÇÃO DOS CONTEÚDOS AQUI REGISTRADOS. É RESPONSABILIDADE DOS USUÁRIOS INDIVIDUAIS VERIFICAR OS USOS PERMITIDOS NA FONTE ORIGINAL, RESPEITANDO-SE OS DIREITOS DE AUTOR OU EDITOR
Notes: Trabalho Completo
Appears in Collections:Coleção de Artigos Científicos

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