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Measures and drivers of the earnings mobility in Brazil

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Author(s):
Marcos Aurelio do Nascimento
Total Authors: 1
Document type: Master's Dissertation
Press: São Paulo.
Institution: Universidade de São Paulo (USP). Faculdade de Economia, Administração e Contabilidade (FEA/SBD)
Defense date:
Examining board members:
Andre Portela Fernandes de Souza; Gustavo Maurício Gonzaga; Paulo Picchetti
Advisor: Andre Portela Fernandes de Souza
Abstract

This paper makes an analysis of the evolution of real earnings mobility for Brazilian workers from 1984 to 2001. The evolution of five real earnings mobility indicators is calculated using the PME, Pesquisa Mensal de Emprego, data set, and it is done by emphasizing their main differences among sample subgroups (gender, age groups, education groups and geographical areas). The economic and demographic determinants of real earnings mobility in Brazil are estimated using the Fixed Effect Method to the mobility indicators calculated for sample cells, composed by individuals of identical characteristics. Among the economic variables, the real average earning, the real interest rate and the real minimum wage have a positive effect in earnings mobility; the inflation rate, when controlled by the other variables, has only distributive effects on earnings, which is corroborated by the Real Plan negative effect on mobility indicators based in trades among individuals; the unemployment rate also plays an important role in mobility determination, presenting different impacts, depending on the concept of mobility adopted. The importance of demographic variables becomes clear when we look at the differences among the various subgroups mobility levels and the econometric results. Men, usually, have more mobility than women, except for per capita directional changes in real earnings. Younger groups also have more directional mobility compared to older individuals, but have lower mobility caused by relative trades among them. Education level seems to contribute to diminish the earnings mobility for those that have more than fourteen years of education. (AU)