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vol.23 issue3BRAZILIAN FINANCIAL CRISIS IN THE 1980S: HISTORICAL PRECEDENT OF AN ECONOMY GOVERNED BY FINANCIAL INTERESTS author indexsubject indexarticles search
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Revista de Economia Contemporânea

Print version ISSN 1415-9848On-line version ISSN 1980-5527

Abstract

MAIA, Alexandre Gori; SAKAMOTO, Arthur  and  WANG, Sharron Xuanren. HOW EMPLOYMENT SHAPES INCOME INEQUALITY: A COMPARISON BETWEEN BRAZIL AND THE U.S. Rev. econ. contemp. [online]. 2019, vol.23, n.3, e192331.  Epub Nov 25, 2019. ISSN 1980-5527.  https://doi.org/10.1590/198055272331.

In this study, we analyze the relationship between the development of occupational structure and income inequality in Brazil and the U.S. While both Brazil and the U.S. face high levels of inequality, low socioeconomic development in Brazil notably reduces the proportion of total income that accrues in the bottom two quintiles of the income distribution. In the U.S., inequality is mostly due to unobserved differences within occupations and has grown in large part because of higher earnings among high-skilled workers. Our results highlight that the effects of occupational structure are generally more pronounced at lower levels of economic development. At the higher level of economic development found in the U.S., inequality appears to increase largely due to rising inequality among high-skilled employees, which may be a function of unobserved organizational variables such as firm productivity and market advantage.

Keywords : inequality decomposition; occupation; middle class; labor market.

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