Sustaining Employment and Wage Gains in Brazil

Sustaining Employment and Wage Gains in Brazil PDF

Author: Joana Silva

Publisher: World Bank Publications

Published: 2015-08-26

Total Pages: 175

ISBN-13: 1464806454

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Continued social and economic progress in Brazil will depend on high employment, sustained labor productivity and income growth, and opportunities for the poor and disadvantaged to upgrade their own productivity and convert it into sustainable incomes.

Rightsizing Brazil’s Public-Sector Wage Bill

Rightsizing Brazil’s Public-Sector Wage Bill PDF

Author: Ms.Izabela Karpowicz

Publisher: International Monetary Fund

Published: 2018-10-08

Total Pages: 24

ISBN-13: 1484380444

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Brazil’s public-sector wage bill is comparatively high. It grows inertially and competes with other spending. Rightsizing the wage bill could stimulate administrative efficiency and bring more equity into a system where public employees earn more than private in comparable professions. Most importantly, however, a reform is necessary to comply with the Federal government expenditure ceiling and the subnational fiscal responsibility rules. A reform should thus encompass all government levels, and all careers, and should aim to achieve a real decrease in salaries and lower employment. In the medium term, a review of the compensation structure should rationalize the multitude if wage grids, merge allowances into the base wage, and align public sector compensation to private wages in low-skilled professions.

Institutions, Informality, and Wage Flexibility

Institutions, Informality, and Wage Flexibility PDF

Author: Mr.Marcello M. Estevão

Publisher: International Monetary Fund

Published: 2012-03-01

Total Pages: 29

ISBN-13: 147552014X

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Even though institutions are created to protect workers, they may interfere with labor market functioning, raise unemployment, and end up being circumvented by informal contracts. This paper uses Brazilian microeconomic data to show that the institutional changes introduced by the 1988 Constitution lowered the sensitivity of real wages to changes in labor market slack and could have contributed to the ensuing higher rates of unemployment in the country. Moreover, the paper shows that states that faced higher increases in informality (i.e., illegal work contracts) following the introduction of the new Constitution tended to have smaller drops in wage responsiveness to macroeconomic conditions, thus suggesting that informality serves as a escape valve to an over-regulated environment.

The Short-Term Impact of COVID-19 on Labor Markets, Poverty and Inequality in Brazil

The Short-Term Impact of COVID-19 on Labor Markets, Poverty and Inequality in Brazil PDF

Author: International Monetary Fund

Publisher: International Monetary Fund

Published: 2021-03-05

Total Pages: 36

ISBN-13: 1513571648

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We document the short-term impact of the COVID-19 pandemic on the Brazilian labor market focusing on employment, wages and hours worked using the nationally representative household surveys PNAD-Continua and PNAD COVID. Sectors most susceptible to the shock because they are more contact-intensive and less teleworkable, such as construction, domestic services and hospitality, suffered large job losses and reductions in hours. Given low income workers experienced the largest decline in earnings, extreme poverty and the Gini coefficient based on labor income increased by around 9.2 and 5 percentage points, respectively, due to the immediate shock. The government’s broad based, temporary Emergency Aid transfer program more than offset the labor income losses for the bottom four deciles, however, such that poverty relative to the pre-COVID baseline fell. At a cost of around 4 percent of GDP in 2020 such support is not fiscally sustainable beyond the short-term and ended in late 2020. The challenge will be to avoid a sharp increase in poverty and inequality if the labor market does not pick up sufficiently fast in 2021.

Firms and the Decline in Earnings Inequality in Brazil

Firms and the Decline in Earnings Inequality in Brazil PDF

Author: Jorge Alvarez

Publisher: International Monetary Fund

Published: 2017-12-14

Total Pages: 59

ISBN-13: 1484333470

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We document a large decrease in earnings inequality in Brazil between 1996 and 2012. Using administrative linked employer-employee data, we fit high-dimensional worker and firm fixed effects models to understand the sources of this decrease. Firm effects account for 40 percent of the total decrease and worker effects for 29 percent. Changes in observable worker and firm characteristics contributed little to these trends. Instead, the decrease is primarily due to a compression of returns to these characteristics, particularly a declining firm productivity pay premium. Our results shed light on potential drivers of earnings inequality dynamics.

Sugar Prices, Labor Income, and Poverty in Brazil

Sugar Prices, Labor Income, and Poverty in Brazil PDF

Author: Ekaterina Krivonos

Publisher: World Bank Publications

Published: 2006

Total Pages: 40

ISBN-13:

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"This paper assesses the impact that a potential liberalization of sugar regimes in OECD countries could have on household labor income and poverty in Brazil. The authors first estimate the extent of price transmission from world markets to 11 Brazilian states to capture the fact that some local markets may be relatively more isolated from changes in world prices. They then simultaneously estimate the impact that changes in domestic sugar prices have on regional wages and employment depending on worker characteristics. Finally, they measure the impact on household income of a 10 percent increase in world sugar prices. Results suggest that workers in the sugar sector and in sugar-producing regions have better employment opportunities and experience larger wage increases. More interestingly, households at the top of the income distribution experience larger income gains due to higher wages, whereas households at the bottom of the distribution experience larger income gains due to movements out of unemployment. "--World Bank web site.

Trade Liberalization, Employment Flows and Wage Inequality in Brazil

Trade Liberalization, Employment Flows and Wage Inequality in Brazil PDF

Author: Francisco H. G. Ferreira

Publisher:

Published: 2007

Total Pages: 64

ISBN-13:

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Using nationally representative, economywide data, this paper investigates the relative importance of trade-mandated effects on industry wage premia; industry and economywide skill premia; and employment flows in accounting for changes in the wage distribution in Brazil during the 1988-95 trade liberalization. Unlike in other Latin American countries, trade liberalization appears to have made a significant contribution toward a reduction in wage inequality. These effects have not occurred through changes in industry-specific (wage or skill) premia. Instead, they appear to have been channeled through substantial employment flows across sectors and formality categories. Changes in the economywide skill premium are also important.

Sugar Prices, Labor Income, and Poverty in Brazil

Sugar Prices, Labor Income, and Poverty in Brazil PDF

Author: Ekaterina Krivonos

Publisher:

Published: 2012

Total Pages:

ISBN-13:

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This paper assesses the impact that a potential liberalization of sugar regimes in OECD countries could have on household labor income and poverty in Brazil. The authors first estimate the extent of price transmission from world markets to 11 Brazilian states to capture the fact that some local markets may be relatively more isolated from changes in world prices. They then simultaneously estimate the impact that changes in domestic sugar prices have on regional wages and employment depending on worker characteristics. Finally, they measure the impact on household income of a 10 percent increase in world sugar prices. Results suggest that workers in the sugar sector and in sugar-producing regions have better employment opportunities and experience larger wage increases. More interestingly, households at the top of the income distribution experience larger income gains due to higher wages, whereas households at the bottom of the distribution experience larger income gains due to movements out of unemployment.

Earnings Inequality

Earnings Inequality PDF

Author: Robert H. Haveman

Publisher: American Enterprise Institute

Published: 1996

Total Pages: 68

ISBN-13: 9780844770765

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Analyses changes in men's earnings from the mid-1970s to 1991.