The Evolution of Industrial Earnings Inequality in Mexico and Brazil

Paulo Du Pin Calmon, Pedro Conceição, James K. Galbraith, Vidal Garza Cantu and Abel Hibert

Review of Development Economics, 2000, vol. 4, issue 2, 194-203

Abstract: Industrial data are used to derive estimates of the pattern of change in wage inequality in Mexico and Brazil. Using the group decomposition of Theil’s T‐statistic, the paper presents monthly changes in the dispersion of industrial wages for Brazil (1976 through 1995) and for Mexico (1968 through 1998). Both countries show increases in wage dispersion over time, and a strong negative correlation is found with the rate of real economic growth. Other things equal, the later Brazilian heterodox stabilization plans seem to have reduced inequality in the short run.

Date: 2000
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