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Returns and intergenerational mobility of education during period of falling earnings inequality in Brazil

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  • Neri, Marcelo Côrtes
  • Bonomo, Tiago

Abstract

Education related changes are often argued as the main reasons for changes in earnings distribuctions. However, omitted variable and measurement error biases possibly affect econometric estimates of these effects. Brazil experienced a sharp fall of individual labour income inequality betwenn 1996 and 2014. Coincidently, there are special supplements of PNAD on family background in these two years that allow us to better address the role played by falling education returns. This note takes advantage of this information to provide new estimates of the level and evolution of the returns to education in Brazil using variable premiums by education level, quantile regressions and pseudo panels.

Suggested Citation

  • Neri, Marcelo Côrtes & Bonomo, Tiago, 2017. "Returns and intergenerational mobility of education during period of falling earnings inequality in Brazil," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 793, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
  • Handle: RePEc:fgv:epgewp:793
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    References listed on IDEAS

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    1. Lam, David & Schoeni, Robert F, 1993. "Effects of Family Background on Earnings and Returns to Schooling: Evidence from Brazil," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 710-740, August.
    2. Neidhöfer, Guido & Serrano, Joaquín & Gasparini, Leonardo, 2018. "Educational inequality and intergenerational mobility in Latin America: A new database," Journal of Development Economics, Elsevier, vol. 134(C), pages 329-349.
    3. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters,in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
    4. Reis, Mauricio Cortez & Ramos, Lauro, 2011. "Escolaridade dos pais, desempenho no mercado de trabalho e desigualdade de rendimentos," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 65(2), June.
    5. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, September.
    6. Fernando A. Veloso & Sérgio Guimarães Ferreira, 2003. "Mobilidade Intergeracional de Educação no Brasil," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31st Brazilian Economics Meeting] f25, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    7. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-1160, September.
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