Firms and the Decline in Earnings Inequality in Brazil

By Jorge Alvarez, Felipe Benguria, Niklas Engbom, C. Moser. Social Science Research Network, 2017

146 citations recorded by the source corpus.

We document a large decrease in earnings inequality in Brazil between 1996 and 2012. Using administrative linked employer-employee data, we fit high-dimensional worker and firm fixed-effects models to understand the sources of this decrease. Firm effects account for 40 percent of the total decrease and worker effects for 29 percent. Changes in observable worker and firm characteristics contributed little to these trends. Instead, the decrease is primarily due to a compression of returns to these characteristics, particularly a declining firm productivity-pay premium. Our results shed light on potential drivers of earnings inequality dynamics.

Subfields: Economics and Econometrics, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/62fb18c380ef27d0724f9363aa0e041e95c66772

How researchers see this paper

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In Economics and Econometrics

  1. Christian Moser
  2. Niklas Engbom

In Sociology and Political Science

  1. Christian Moser
  2. Niklas Engbom

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