Abstract
ABSTRACT In this study, we analyze the relationship between the development of occupational structure and income inequality in Brazil and the U.S. While both Brazil and the U.S. face high levels of inequality, low socioeconomic development in Brazil notably reduces the proportion of total income that accrues in the bottom two quintiles of the income distribution. In the U.S., inequality is mostly due to unobserved differences within occupations and has grown in large part because of higher earnings among high-skilled workers. Our results highlight that the effects of occupational structure are generally more pronounced at lower levels of economic development. At the higher level of economic development found in the U.S., inequality appears to increase largely due to rising inequality among high-skilled employees, which may be a function of unobserved organizational variables such as firm productivity and market advantage.
Highlights
In this study, we analyze the relationship between the development of occupational structure and income inequality in Brazil and the U.S While both Brazil and the U.S face high levels of inequality, low socioeconomic development in Brazil notably reduces the proportion of total income that accrues in the bottom two quintiles of the income distribution
We investigate the relationship between the development of occupational structure and income inequality in Brazil and in the U.S we explore: (i) how the development of occupational structure defines different levels of income inequality; and (ii) how the dynamics of occupational structure have diverse impacts on inequality, depending on the level of socioeconomic development
Earnings inequality is significantly higher in Brazil than in the U.S Characterized by lesser economic development than the U.S, the Brazilian labor force faces lower levels of education, wages, and occupational skills
Summary
We analyze the relationship between the development of occupational structure and income inequality in Brazil and the U.S While both Brazil and the U.S face high levels of inequality, low socioeconomic development in Brazil notably reduces the proportion of total income that accrues in the bottom two quintiles of the income distribution. RESUMO: Neste estudo, analisamos a relação entre o desenvolvimento da estrutura ocupacional e a desigualdade de renda no Brasil e nos Estados Unidos. In the 21st century, Brazil and the U.S are known as the two largest economies and populations of the Americas, with high levels of domestic inequality but notably different levels of socioeconomic development. The latter societal characteristic is generally believed to be closely related to occupational structure, which is fundamentally a proximate determinant of earnings (TREIMAN, 1970). Occupational structure is an essential aspect of production organization, and it reflects the level of technological development, the demand for various products and services, as well as the supply and demand for different skills (BANERJEE, 2015; BLAU and DUNCAN, 1966; ROSE and HARRISON, 2007)
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