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

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  • Marcelo Neri
  • Cecilia Machado
  • Valdemar Pinho Neto

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.

Suggested Citation

  • Marcelo Neri & Cecilia Machado & Valdemar Pinho Neto, 2018. "Earnings inequality in the Brazilian formal sector: The role of firms, education, and top incomes 1994-2015," WIDER Working Paper Series wp-2018-157, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2018-157
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    References listed on IDEAS

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    Cited by:

    1. Marcelo Neri, 2018. "What are the main drivers of Brazilian income distribution changes in the new millennium?," WIDER Working Paper Series wp-2018-186, World Institute for Development Economic Research (UNU-WIDER).
    2. Marcelo Neri, 2018. "What are the main drivers of Brazilian income distribution changes in the new millennium?," WIDER Working Paper Series 186, World Institute for Development Economic Research (UNU-WIDER).

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