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 |
Files in This Item:
File | Description | Size | Format | |
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Artigo_2021_Labor Market Experience_TC.pdf | Artigo_2021_Labor Market Experience_TC | 1.06 MB | Adobe PDF | View/Open |
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