Abstract
During the first decade of the 21st century, the Brazilian economy stood out by conciliating growth with income inequality reductions. To better understand this growth process, I propose to study the dynamics of Brazil’s employment and wage inequality structure based on the hypothesis that there was a cumulative circular movement in which the reduction of income inequality, changes in the composition of the employment and growth reinforced each other. By econometrically testing the existence of this cumulative mechanism for Brazil for the years 2004-2019, I find that the employment composition and wage inequality are mutually related. The results highlight existing research gaps in understanding the relations between wage inequality and employment composition and avenues for further research.
Keywords:
growth; distribution; wage inequality; employment composition
Thumbnail
Thumbnail
Thumbnail
Thumbnail
(a) Ratio of the average wage of the admitted workers in the selected sectors over the average wage of the admitted workers in the remaining sectors (12-month moving average); (b) Difference in the net hiring between the selected sectors and the remaining sectors (12month moving average)Source: CAGED
Source: Author’s own elaboration.
