Earnings inequalities and educational mobility in Brazil over two decades
AbstractThis paper studies the impact of changes in educational opportunities on various definitions of labour market inequalities in Brazil over two decades (1976-96). Using four editions of the nationally representative PNAD survey, we analyze the evolution of overall inequalities and inequalities of opportunity in 40-49 year old males’ earnings. We design and implement semiparametric decompositions of the respective effects of (i) schooling expansion, (ii) changes in the structure of earnings, and (iii) changes in intergenerational educational mobility. Earnings inequalities varied little over the period, with a peak in the late 1980s that can be imputed to hyperinflation. First of all, the decompositions show that changes in the distribution of education contributed to the increase in both overall earnings inequalities and inequalities of opportunity among the oldest generations, before sharply reducing them among the post-WWII cohorts. Secondly, the decrease in returns to education also contributed to equalizing labour market opportunities in the 1988-96 period. Thirdly and lastly, the changes in educational mobility were not large enough to significantly affect earnings inequalities, whereas it is shown that they should play a prominent role in equalizing opportunities in the future.
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Bibliographic InfoPaper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/4402.
Date of creation: 2009
Date of revision:
Publication status: Published in Poverty, Inequality, and Policy in Latin America, . pp. 47-84.Length: 37 pages
Labour market; Equality of opportunities; Inequality decomposition; Brazil; Egalité des chances; Marché du travail; Décomposition des inégalités; Brésil;
Other versions of this item:
- Denis Cogneau & Jérémie Gignoux, 2005. "Earnings inequalities and educational mobility in Brazil over two decades," Working Papers DT/2005/03, DIAL (Développement, Institutions et Mondialisation).
- Denis Cogneau & Jérémie Gignoux, 2005. "Earnings Inequalities and Educational Mobility in Brazil over Two Decades," Ibero America Institute for Econ. Research (IAI) Discussion Papers 121, Ibero-America Institute for Economic Research.
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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