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The labor market in Brazil, 2001–2022

Author

Listed:
  • Sergio Pinheiro Firpo

    (Insper, Brazil, and IZA, Germany)

  • Alysson Lorenzon Portella

    (Insper Institute of Education and Research, Brazil)

Abstract

In the first decade of the 21st century, the Brazilian economy experienced an important expansion followed by a significant decline in inequality. The minimum wage increased rapidly, reducing inequality with no negative effects on employment or formality. This resulted from economic growth and greater supply of skilled labor. However, from 2014-2021, real wages were stagnant, and unemployment rates surged. Inequality rose again, although only marginally. Some positive signs emerged in 2022, although it is still too early to know whether they mark a return to past trends or a recovery from the pandemic.

Suggested Citation

  • Sergio Pinheiro Firpo & Alysson Lorenzon Portella, 2024. "The labor market in Brazil, 2001–2022," IZA World of Labor, Institute of Labor Economics (IZA), pages 4412-4412, April.
    • Handle: RePEc:iza:izawol:journl:2024:n:441v2
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    References listed on IDEAS

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    1. Julian Messina & Joana Silva, 2021. "Twenty Years of Wage Inequality in Latin America," The World Bank Economic Review, World Bank, vol. 35(1), pages 117-147.
    2. Daniel Haanwinckel, 2023. "Supply, Demand, Institutions, and Firms: A Theory of Labor Market Sorting and the Wage Distribution," NBER Working Papers 31318, National Bureau of Economic Research, Inc.
    3. Daniel Haanwinckel & Rodrigo R Soares, 2021. "Workforce Composition, Productivity, and Labour Regulations in a Compensating Differentials Theory of Informality [Search with Multi-worker Firms]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(6), pages 2970-3010.
    4. Niklas Engbom & Christian Moser, 2022. "Earnings Inequality and the Minimum Wage: Evidence from Brazil," American Economic Review, American Economic Association, vol. 112(12), pages 3803-3847, December.
    5. Sergio Firpo & Alysson Portella & Flavio Riva & Giovanna Úbida, 2021. "The changing nature of work and inequality in Brazil (2003-19): A descriptive analysis," WIDER Working Paper Series wp-2021-162, World Institute for Development Economic Research (UNU-WIDER).
    6. Fernández, Manuel & Messina, Julián, 2018. "Skill premium, labor supply, and changes in the structure of wages in Latin America," Journal of Development Economics, Elsevier, vol. 135(C), pages 555-573.
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    More about this item

    Keywords

    Labor Income; Inequality; Brazil;
    All these keywords.

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

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