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Challenges in the Brazilian labor market: Pre- and post-pandemic wage gaps

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  • Gomes, Magno Rogerio
  • de Souza, Solange Cassia Inforzato
  • Mourão, Paulo Jorge Reis

Abstract

This study analyzes the impact of the COVID-19 pandemic on the occupations and wages of formal and informal workers in Brazil, focusing on social inequalities. It uses data from the PNADC for the first quarter of 2019 and 2022. Wage determinants were estimated using the Mincer equation and the Tobit model with Difference in Differences. The results indicate an increase in informality, wage penalties for women, non-white individuals, and workers with low education. The pandemic reduced the incomes of all groups, with a greater decline among formal workers, highlighting structural inequalities and barriers to social mobility.

Suggested Citation

  • Gomes, Magno Rogerio & de Souza, Solange Cassia Inforzato & Mourão, Paulo Jorge Reis, 2025. "Challenges in the Brazilian labor market: Pre- and post-pandemic wage gaps," Finance Research Letters, Elsevier, vol. 85(PB).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pb:s1544612325012863
    DOI: 10.1016/j.frl.2025.108028
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    References listed on IDEAS

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    1. Gervásio Ferreira dos Santos & Luiz Carlos de Santana Ribeiro & Rodrigo Barbosa de Cerqueira, 2020. "The informal sector and Covid‐19 economic impacts: The case of Bahia, Brazil," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(6), pages 1273-1285, December.
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    5. Flávio Kauê Fiuza-Moura & Katy Maia & Solange Cassia Inforzato de Souza & Magno Rogério Gomes & Paulo Reis Mourão, 2019. "The luck of being of the right gender and color: a detailed discussion about the wage gaps in the Brazilian manufacturing industry," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(3), pages 1275-1300, May.
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