Advanced Search
MyIDEAS: Login

Some Stylized Facts of The Informal Sector in Brazil in the 1980`s end 1990`s

Contents:

Author Info

  • Fábio Veras Soares
Registered author(s):

    Abstract

    Dois fatos caracterizaram a evolução do setor informal no Brasil nas últimas duasdécadas: o aumento na proporção de empregados sem registro em carteira e a reduçãono diferencial de salários entre trabalhadores registrados (com carteira) e sem registro(sem carteira). Neste trabalho, foi brevemente revisada a literatura sobre o setorinformal em países em desenvolvimento e documentados tanto o aumento dainformalidade quanto a redução do diferencial de salários. Adicionalmente, investigousequais fatores foram responsáveis pela redução no diferencial de salários e como talredução contribuiu para a diminuição da desigualdade salarial entre 1981 e 1999.Entre os resultados encontrados, destacam-se: i) a coincidência entre esses doisfenômenos e as reformas pró-mercado do início dos anos 1990; ii) a redução dodiferencial de salários formal/informal como o segundo fator mais importante para aredução da desigualdade de salários, após educação. Por que e como isso ocorreuainda são questões abertas ao debate. Tais aspectos serão analisados em dois Textospara Discussão que serão publicados futuramente. Neste trabalho, tanto o impacto daabertura comercial sobre o setor informal como os efeitos da crescente indexação dossalários do setor informal ao salário mínimo serão estudados. Two facts have characterized the evolution of the informal sector in Brazil during thelast two decades: the increase in the proportion of non-registered workers and thediminishing wage gap between non-registered and registered workers. In this paper,we briefly review the literature on informal sector in developing countries anddocument both the increase of the informal sector and the fall in the wage gap inBrazil. Besides, we investigate which factors were responsible for the fall in the wagegap and how this reduction has contributed to reduce wage inequality between 1981and 1999. Among our findings, we would highlight: i) the coincidence between thesetwo movements and the market-oriented reforms of the early 1990?s; ii) that the fallin the formal/informal wage gap has substantially contributed to the decrease in wageinequality. After education, the fall in the wage premium due to the possession of awork-card was the main responsible for bringing down wage inequality. Why andhow it happened is an open debate. We will tackle this issue on two forthcomingpapers were we investigate the role of the trade liberalization (Soares, 2004a) and theeffects of the increasing indexation of informal sector wages to the minimum wage(Soares, 2004b).

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.ipea.gov.br/portal/images/stories/PDFs/TDs/td_1020.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Instituto de Pesquisa Econômica Aplicada - IPEA in its series Discussion Papers with number 1020.

    as in new window
    Length: 47 pages
    Date of creation: May 2004
    Date of revision:
    Handle: RePEc:ipe:ipetds:1020

    Contact details of provider:
    Postal: SBS - Quadra 01 - Bloco J - Ed. BNDES, Brasília, DF - 70076-90
    Phone: +55(061)315-5000
    Fax: +55(61)321-1597
    Email:
    Web page: http://www.ipea.gov.br
    More information through EDIRC

    Related research

    Keywords:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Fortin, Bernard & Marceau, Nicolas & Savard, Luc, 1997. "Taxation, wage controls and the informal sector," Journal of Public Economics, Elsevier, vol. 66(2), pages 293-312, November.
    2. Sageeta Pratap & Erwan Quintin, 2002. "Are Labor Markets Segmented in Argentina? A Semiparametric Approach," Working Papers 0202, Centro de Investigacion Economica, ITAM.
    3. James J. Heckman & V. Joseph Hotz, 1986. "An Investigation of the Labor Market Earnings of Panamanian Males Evaluating the Sources of Inequality," Journal of Human Resources, University of Wisconsin Press, vol. 21(4), pages 507-542.
    4. Heckman, James J & Sedlacek, Guilherme, 1985. "Heterogeneity, Aggregation, and Market Wage Functions: An Empirical Model of Self-selection in the Labor Market," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1077-1125, December.
    5. Fábio Veras Soares, 2004. "Do Informal Workers Queue For Formal Jobs in Brazil ?," Discussion Papers 1021, Instituto de Pesquisa Econômica Aplicada - IPEA.
    6. Green, Francis & Dickerson, Andy & Saba Arbache, Jorge, 2001. "A Picture of Wage Inequality and the Allocation of Labor Through a Period of Trade Liberalization: The Case of Brazil," World Development, Elsevier, vol. 29(11), pages 1923-1939, November.
    7. Rauch, James E., 1991. "Modelling the informal sector formally," Journal of Development Economics, Elsevier, vol. 35(1), pages 33-47, January.
    8. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
    9. Magnac, Th, 1991. "Segmented or Competitive Labor Markets," Econometrica, Econometric Society, vol. 59(1), pages 165-87, January.
    10. Esfahani, Hadi S & Salehi-Isfahani, Djavad, 1989. "Effort Observability and Worker Productivity: Towards an Explanation of Economic Dualism," Economic Journal, Royal Economic Society, vol. 99(397), pages 818-36, September.
    11. Yamada, Gustavo, 1996. "Urban Informal Employment and Self-Employment in Developing Countries: Theory and Evidence," Economic Development and Cultural Change, University of Chicago Press, vol. 44(2), pages 289-314, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ipe:ipetds:1020. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fabio Schiavinatto).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.