Book

Wage Inequality in Latin America : Understanding the Past to Prepare for the Future

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collection.link.135
https://openknowledge.worldbank.org/handle/10986/6000
collection.link.137
https://openknowledge.worldbank.org/handle/10986/6002
collection.link.59
https://openknowledge.worldbank.org/handle/10986/2167
collection.name.135
Portuguese PDFs Available
collection.name.137
Spanish PDFs Available
collection.name.59
Latin American Development Forum
dc.contributor.author
Messina, Julian
dc.contributor.author
Silva, Joana
dc.date.accessioned
2017-11-06T22:33:59Z
dc.date.available
2017-11-06T22:33:59Z
dc.date.issued
2018
dc.description.abstract
What caused the decline in wage inequality of the 2000s in Latin America? Looking to the future, will the current economic slowdown be regressive? Wage Inequality in Latin America: Understanding the Past to Prepare for the Future addresses these two questions by reviewing relevant literature and providing new evidence on what we know from the conceptual, empirical, and policy perspectives. The answer to the first question can be broken down into several parts, although the bottom line is that the changes in wage inequality resulted from a combination of three forces: (a) education expansion and its effect on falling returns to skill (the supply-side story); (b) shifts in aggregate domestic demand; and (c) exchange rate appreciation from the commodity boom and the associated shift to the nontradable sector that changed interfirm wage differences. Other forces had a non-negligible but secondary role in some countries, while they were not present in others. These include the rapid increase of the minimum wage and a rapid trend toward formalization of employment, which played a supporting role but only during the boom. Understanding the forces behind recent trends also helps to shed light on the second question. The analysis in this volume suggests that the economic slowdown is putting the brakes on the reduction of inequality in Latin America and will likely continue to do so—but it might not actually reverse the region’s movement toward less wage inequality.
en
dc.identifier.isbn
978-1-4648-1039-8
dc.identifier.uri
http://hdl.handle.net/10986/28682
dc.language
English
dc.publisher
Washington, DC: World Bank
dc.relation.ispartofseries
Latin American Development Forum;
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
INEQUALITY
dc.subject
ECONOMIC DEVELOPMENT
dc.subject
WAGE
dc.subject
LATIN AMERICA
dc.subject
ECONOMIC BOOM
dc.subject
FIRM HETEROGENEITY
dc.subject
EARNINGS INEQUALITY
dc.subject
EDUCATION EXPANSION
dc.subject
LABOR MARKETS
dc.title
Wage Inequality in Latin America
en
dc.title.subtitle
Understanding the Past to Prepare for the Future
en
dc.type
Book
en
okr.date.disclosure
2017-11-07
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Publication
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/978-1-4648-1039-8
okr.identifier.internaldocumentum
211039
okr.identifier.report
122492
okr.imported
true
en
okr.language.supported
en
okr.region.administrative
Latin America & Caribbean
okr.region.geographical
Caribbean
okr.region.geographical
Central Africa
okr.region.geographical
Latin America
okr.topic
Poverty Reduction :: Inequality
okr.topic
Poverty Reduction :: Achieving Shared Growth
okr.topic
Social Protections and Labor :: Labor Markets
okr.topic
Social Protections and Labor :: Labor Policies
okr.topic
Social Protections and Labor :: Wages, Compensation & Benefits
okr.unit
LCRCE

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