Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/105520
Authors: 
Arbache, Jorge Saba
Year of Publication: 
1998
Series/Report no.: 
Department of Economics Discussion Paper, University of Kent 9817
Abstract: 
One of the established findings in the literature on inter-industry wage differentials is the long-term stability of the wage structure. In this paper, we examine how market-oriented and other economic reforms undertaken by an industrialising country affect the dispersion and structure of wages. Using a large, individual-level dataset, we find that the labour market is highly responsive to the economic reforms undertaken in Brazil in the early 1990s. Wage dispersion falls dramatically just after the implementation of economic reforms and we find evidence that the wage structure is under transition after the changes. Human capital variables gain importance in the explanation of wage differentials, while industry affiliation and institutional characteristics become less important. This finding is consistent with the labour market being flexible enough to adapt to the new economic conditions, and becoming more competitive as a result of the economic reforms.
Subjects: 
Economic reforms
wage structure
wage dispersion
Brazil
JEL: 
J31
Document Type: 
Working Paper

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