Firms and the Decline of Earnings Inequality in Brazil

Tuesday, 26 April, 2016
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.