The Evolution of Industrial Wage Inequality in Mexico and Brazil: A Comparative Study

Posted: 18 Aug 1998

See all articles by Paulo du Pin Calmon

Paulo du Pin Calmon

University of Brasilia

Pedro Conceicao

affiliation not provided to SSRN

James K. Galbraith

University of Texas at Austin - Lyndon B. Johnson School of Public Affairs; Levy Economics Institute of Bard College

Vidal Garza-Cantu

Instituto Tecnologico y de Estudios Superiores de Monterrey (ITESM)- EGAP

Abel Hibert

University of Texas at Austin - Lyndon B. Johnson School of Public Affairs

Abstract

We use industrial data to derive estimates of the pattern of change in wage inequality in Mexico and Brazil. Using the group-wise decomposition of Theil's T statistic we present monthly series of measurements of change in the dispersion of industrial wages for Brazil (1976 through 1995) and for Mexico (1968 through 1995). Both countries show increases in wage dispersion over time, and we find a strong negative correlation with the rate of real economic growth, suggesting that real per capita income growth is an important determinant of movements in inequality. Heterodox stabilization plans apparently reduce inequality in the short-run.

JEL Classification: J31

Suggested Citation

du Pin Calmon, Paulo and Conceicao, Pedro and Galbraith, James K. and Garza-Cantu, Vidal and Hibert, Abel, The Evolution of Industrial Wage Inequality in Mexico and Brazil: A Comparative Study. Available at SSRN: https://ssrn.com/abstract=115410

Paulo Du Pin Calmon

University of Brasilia ( email )

Brasilia/DF, 70.910-900
Brazil

Pedro Conceicao

affiliation not provided to SSRN

James K. Galbraith (Contact Author)

University of Texas at Austin - Lyndon B. Johnson School of Public Affairs ( email )

2300 Red River St., Stop E2700
PO Box Y
Austin, TX 78713
United States
512-471-1244 (Phone)

Levy Economics Institute of Bard College

Blithewood
Annandale-on-Hudson, NY 12504
United States
845-758-7700 (Phone)
845-758-1149 (Fax)

Vidal Garza-Cantu

Instituto Tecnologico y de Estudios Superiores de Monterrey (ITESM)- EGAP ( email )

Mexico

HOME PAGE: http://www.itesm.mx/egap

Abel Hibert

University of Texas at Austin - Lyndon B. Johnson School of Public Affairs ( email )

2300 Red River St., Stop E2700
PO Box Y
Austin, TX 78713
United States
Not Available (Phone)
Not Available (Fax)

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