Title: Accounting For Income Inequality: An Application Of The Fields Methodology To The Recent Fall Of Inequality In Brazil
Abstract: The first decade of the 2000s is marked by changes in the labor market and a process of continuous reduction of income inequality in Brazil. But what explains this recent fall in inequality? Following Fields (2002), this article proposes to decompose the level of inequality in orthogonal factors based on variables of income determination equations (mincerian equation). Furthermore, based on measures that satisfy the inequality axioms Shorrocks (1982) proposes the decomposition of the difference of inequality, as well as the components of the relative importance in coefficient effect, standard deviation effect and correlation effect. Based on the sample of the Brazilian Population Census 2000 and 2010 from IBGE, concludes that education is the main factor that explains the 'level' of inequality. Moreover, the variation in education factor is also the main factor that explains the 'difference' of inequality and, for that, the change of the returns to schooling has the largest contribution.
Publication Year: 2014
Publication Date: 2014-01-01
Language: en
Type: article
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Cited By Count: 1
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