How do Economic Reforms affect the Structure of Wages? The Case of Brazilian Manufacturing, 1984-1996
Jorge Arbache ()
Studies in Economics from School of Economics, University of Kent
One of the established findings in the literature on inter-industry wage differentials is the long-term stability of the wage structure. In this paper, we examine how market-oriented and other economic reforms undertaken by an industrialising country affect the dispersion and structure of wages. Using a large, individual-level dataset, we find that the labour market is highly responsive to the economic reforms undertaken in Brazil in the early 1990s. Wage dispersion falls dramatically just after the implementation of economic reforms and we find evidence that the wage structure is under transition after the changes. Human capital variables gain importance in the explanation of wage differentials, while industry affiliation and institutional characteristics become less important. This finding is consistent with the labour market being flexible enough to adapt to the new economic conditions, and becoming more competitive as a result of the economic reforms.
Keywords: Economic reforms; wage structure; wage dispersion; Brazil (search for similar items in EconPapers)
JEL-codes: J31 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ukc:ukcedp:9817
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Studies in Economics from School of Economics, University of Kent School of Economics, University of Kent, Canterbury, Kent, CT2 7NP.
Bibliographic data for series maintained by Tracey Girling ().