The aim of this paper is to assess the impact of supply and demand for skills in the wage differentials between skilled and unskilled workers in Brazil, during 1992 and 2009. To do so, a microeconomic model of supply and demand for skill was used where a worker s skill is directly linked with its educational level. A rise in the skill premium (wage differentials between college and less than college workers) was observed between 1992 and 2001, driven by the demand for skilled labor. Between 2002 and 2009, a slight decrease in the skill premium was observed, which was driven by the intensification of the relative supply of skilled workers.
skill premium; supply; demand
