Earnings inequality in the Brazilian formal sector: The role of firms, education, and top incomes 1994-2015

Marcelo Neri, Cecilia Machado and Valdemar Pinho Neto

No wp-2018-157, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper documents the evolution and the determinants of earnings inequality in the Brazilian formal sector from 1994 to 2015, using establishment level data. In 2015, schooling explained 33 per cent of overall inequality. Firm-specific effects explain 65 per cent of total inequality level and 76 per cent of the inequality fall observed. The downward inequality trend parallels the one seen in household surveys. However, the distributive decompression goes only until the 90th percentile, which is in line with Personal Income Tax based evidence.

Keywords: Earnings inequality; Linked employer-employee data; Inequality; Entropy indexes (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (2)

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