This study evaluates the evolution of earnings inequality in Brazil based on the 1995 to 2005 national household surveys - PNADs. It describes the behavior of both size and per capita household distributions, assessing the influence of changes related to labor force schooling on the former and of unemployment rate variations on the latter. Synthetic indicators, based on the Theil T index, for schooling inequality and earnings profile show that the role of education was quite important for the fall in inequality along the current decade, although the indications are ambiguous for the previous one. Regarding the unemployment rate, microsimulations exercises that impose either the 1995 rate or zero unemployment lead to a decrease in the Gini coefficient. However, the reduction is not very significant, meaning that the role of unemployment is limited. Taking together, the findings point to the need of a more detailed investigation of other factors, including those related to the labor market institutional framework, in order to develop a better understanding of the recent changes in Brazilian earnings inequality.
Brazil; labor market; inequality; education; unemployment
