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dc.titleWage Inequality in Latin America: Learning from Matched Employer-Employee Data
dc.contributor.authorMuñoz, Ercio
dc.contributor.authorRucci, Graciana
dc.contributor.authorSaltiel, Fernando
dc.contributor.authorUrzúa, Sergio
dc.contributor.orgunitLabor Markets Division
dc.coverageBrazil
dc.coverageChile
dc.coverageEcuador
dc.coverageLatin America
dc.date.available2019-06-04T00:00:00
dc.date.issue2018-08-29T00:00:00
dc.description.abstractInequality in Latin America fell substantially in the early 2000s. In this paper, we take advantage of administrative matched employee-employed data in Brazil, Chile and Ecuador to examine whether these inequality trends held in the formal sector, as well. We document a significant decrease in the log variance of earnings in Brazil and Ecuador in the early 2000s, whereas inequality in Chile between 2008 and 2015 remained largely flat. In this context, we find that inequality among salaried workers is largely a between-firm phenomenon across these three countries. We expand on our descriptive analysis and estimate an additive worker and firm fixed effects model to understand the driving factors behind inequality in the region. We find a significant decline in between-firm inequality in Brazil and a modest one in Chile. We last focus our attention on the commodities and manufacturing sectors, which were directly exposed to two large external shocks, the commodity-boom and the ''China Shock". We find an increase in inequality in the former sector accompanied by an reduction in inequality in the latter across the region.
dc.format.extent34
dc.identifier.doihttp://dx.doi.org/10.18235/0001727
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Wage_Inequality_in_Latin_America_Learning_from_Matched_Employer-Employee_Data_en_en.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectIncome Equality
dc.subjectWorkforce and Employment
dc.subjectWage
dc.subject.jelcodeE24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity
dc.subject.jelcodeD22 - Firm Behavior: Empirical Analysis
dc.subject.jelcodeJ08 - Labor Economics Policies
dc.subject.jelcodeJ31 - Wage Level and Structure • Wage Differentials
dc.subject.keywordsWage inequality; Matched Employer-Employee Data; Firms
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01004
idb.operationRG-K1382
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