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
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Citations in the corpus
- Within-Firm Pay Inequality (2017, unknown): “Several recent papers study the role of firm-and worker-level heterogeneity for the rise in aggregate income inequality using administrative data sets from the United States (Barth et al. (2016), Song et al. (2016)), Germany (Card, Heining, and Kline (2013)), and Brazil (Alvarez, Engbom, and Moser (”
- Earnings Inequality and the Minimum Wage: Evidence from Brazil (2017, methodology): “Our analysis combines data from three separate sources: The first dataset are the Brazilian Household surveys Pesquisa Nacional por Amostra de Domicílios (PNAD), which contain a representative sample of households covering all of Brazil, including workers in the formal and informal sectors.”