Decline In Wage Inequality In Brazil : A Survey

Firpo, Sérgio; Portella, Alysson

doi:10.1596/1813-9450-9096

Cited by 20 publications

(30 citation statements)

References 37 publications

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“…We also contribute to a growing literature on the causes of the pronounced decrease in earnings inequality in Brazil since the mid-1990s. Firpo and Portella (2019) provide an excellent survey of recent studies that quantify the importance of falling returns to education and experience (Ferreira et al, 2017), falling returns to firm productivity (Alvarez et al, 2018), trade liberalization (Gonzaga et al, 2006Ferreira et al, 2007;Dix-Carneiro and Kovak, 2015), and the rapid rise of the minimum wage (Engbom and Moser, 2021)-among other factors-toward this decrease in earnings inequality.…”

Section: Related Work Bymentioning

confidence: 99%

Earnings Inequality and Dynamics in the Presence of Informality: The Case of Brazil

et al. 2022

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Using a combination of rich administrative and household survey data, we document a series of new facts on earnings inequality and dynamics in a developing country with a large informal sector: Brazil. Since the mid-1990s, both inequality and volatility of earnings have declined significantly in Brazil's formal sector. Higher-order moments of the distribution of earnings innovations show similar cyclical movements in Brazil as in developed countries like the U.S. Earnings mobility is comparatively high, especially at the bottom of the distribution. Compared to the formal sector, earnings are more volatile in the informal sector. Workers who switch between sectors experience earnings innovations that have a positive mean and are positively skewed when moving to the formal sector but have a negative mean and are negatively skewed when moving to the informal sector. A secular shift of employment toward the less volatile formal sector since the early 2000s has contributed to a decline in the economy-wide volatility of earnings.

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Section: Related Work Bymentioning

confidence: 99%

Earnings Inequality and Dynamics in the Presence of Informality: The Case of Brazil

et al. 2022

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“…For example, in the last twenty years, Brazil has seen a joint growth of its minimum wage and of its supply of more educated, more qualified workers. This dual process has resulted in lower relative returns to skills (Firpo and Portella, 2019), and a compression of the wage distribution. In addition, using data from 10 OECD countries, Haslberger (2021) documents that RBTC can lead to occupational upgrading rather than polarization, as countries differ in terms of the occupational routine-wage hierarchies.…”

Section: Wage Level and Distributionmentioning

confidence: 99%

Is There Job Polarization in Developing Economies? A Review and Outlook

et al. 2021

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“…Perhaps the two most prominent examples of structural change in the U.S. economy over the past few decades have been globalization/offshoring and routine‐replacing technological change leading to a polarized labor market. Measures of vulnerability to offshoring have been developed by Firpo, Fortin, and Lemeiux (), who start by taking the average of the Face‐to‐Face Contact and On‐Site Job variables from the U.S. Department of Labor's Occupational Information Network. These variables measure the degree an occupation requires one to work in close contact with others and be in a particular location.…”

Section: Datamentioning

confidence: 99%

Jobless Recoveries: Stagnation or Structural Change?

Burger

Schwartz

2017

Economic Inquiry

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Within the existing literature a number of competing explanations for jobless recoveries have emerged. On the one hand there is evidence of dynamic structural change including offshoring/globalization and technological advances that are resulting in the loss of middle‐skill (routine) employment. Other studies emphasize a less dynamic economy with slower growth, reduced labor market fluidity, a decline in startup activity, and even economic stagnation. This study exploits variation among U.S. states to assess the degree that stagnation and/or important structural changes in the economy contribute to the recent phenomenon of jobless recoveries. We find support for both the stagnation and structural change theories of jobless recoveries. On the stagnation side, we find evidence that lower startup rates are a significant predictor of jobless recoveries. We also find evidence that links dynamic structural change to the jobless recovery phenomenon. More specifically states experiencing a long‐run downward trend in the share of routine employment are more likely to experience a jobless recovery. Our results are consistent with the polarization theory where routine‐replacing technological advances permanently reduce demand for middle‐skill labor, thus contributing to jobless recoveries. (JEL E32, E24)

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Decline In Wage Inequality In Brazil : A Survey

Cited by 20 publications

References 37 publications

Earnings Inequality and Dynamics in the Presence of Informality: The Case of Brazil

Earnings Inequality and Dynamics in the Presence of Informality: The Case of Brazil

Is There Job Polarization in Developing Economies? A Review and Outlook

Jobless Recoveries: Stagnation or Structural Change?

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