Firms and the Great Decline of Earnings Inequality in Brazil

This project decomposes the sources of Brazil’s great inequality decline over the past two decades using a large administrative linked employer-employee dataset spanning 1988-2012. In contrast to commonly articulated stories, the study finds that the fall in earnings inequality was driven by a compression of pay differences between firms, rather than by changes in the distribution of firm productivity.

You can now view the research note and project summary of this PEDL exploratory grant.