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Economywide and Sectoral Impacts on Workers of Brazil's Internet Rollout
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Year: 2017 Publisher: Washington, D.C. : The World Bank,

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This paper is a study of the effect of Brazil's staggered Internet rollout between 2000 and 2014 on municipality employment and wages. The study uses a new, annual data set on Internet availability from the Brazil school census, with the assumption that the share of schools that have Internet access in each municipality reflects the general accessibility of Internet connections. These data are combined with Brazil's rich, matched employer-employee survey, which contains annual occupation and wage earnings information for all formally-employed workers in Brazil across all sectors, including primary, secondary, and tertiary industry groups. Contemporaneous and lagged effects are considered. The analysis finds that increased Internet access has no statistically significant net effect on aggregate employment, and has a negative effect on average wages, with a reduction in measures of wage dispersion. Brazil's Internet rollout results in employment shifts from sectors with more limited expansion opportunities (wholesale and retail trade, public administration, and largely publicly-owned utilities, which jointly comprise almost half of the formal workforce in 2010) to sectors with more output expansion opportunities. The employment effects are positive and most pronounced in the manufacturing, transport and storage, finance and insurance, and hospitality industry groups. In the manufacturing sector, Internet access induces positive employment and wage effects in medium- and high-skill occupations.


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Decline In Wage Inequality In Brazil : A Survey
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Year: 2019 Publisher: Washington, D.C. : The World Bank,

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In the last decades, Brazil experienced a historical decline in its wage inequality level, particularly in the first decade of the 21st century. This paper reviews the literature that attempted to explain the observed pattern. It considers mechanisms related to the supply and demand for labor, as well as institutional factors. The paper argues that the favorable economic environment in the period, combined with increases in the minimum wage, higher formalization, and a larger supply of skilled workers led to a compression in wages. However, some aspects of the decline in wage inequality are still unanswered, such as the causes behind a reduction in the experience premium and interfirm payment heterogeneity, as well as the exact role of technological changes. The paper concludes by discussing future trends in wage inequality in Brazil.


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Occupational Segregation and Declining Gender Wage Gap : The Case of Georgia
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Year: 2018 Publisher: Washington, D.C. : The World Bank,

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This paper examines the role of industrial and occupational segregation in explaining the gender wage gap and its evolution in Georgia between 2004 and 2015. It first documents the declining trends observed in the gender wage gap in Georgia during this period, commenting on some of the possible underlying factors driving such trends. It then presents evidence that employment patterns by industry and occupations are highly concentrated in the country and measures the degree of segregation using the Duncan index. Next, it analyzes if and how much industrial and occupational segregation have contributed to the gender wage gap and its decline by decomposing the gender wage gap into the within-category and between-category components. The results point to existing gender wage gaps within sectors, industries, and occupations being the primary drivers of the wage gap in Georgia, and find a smaller role of gender segregation per se in these categories.


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The Economics of the Gender Wage Gap in Armenia
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Year: 2018 Publisher: Washington, D.C. : The World Bank,

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In Armenia, the proportion of women among employed workers increased from 45 to 48 percent between 2008 and 2015. This evolution was accompanied by a fall in the gender earnings gap; however, the difference in average wages of men and women is still among the largest in comparison with countries in the Europe and Central Asia region. This study documents the gender wage gap in Armenia through stylized facts and further investigates its sources. The paper finds that the gender wage gap in hourly pay is 20 percent on average. Looking at the different percentiles, the disparity in wages in Armenia in 2015 shows an inverted U-shaped form with a larger differential in wages between men and women in the middle of the distribution. Using a reweighted, re-centered influence function decomposition, the analysis estimates the contribution of each covariate on the wage structure and composition effects along the wage distribution. The decomposition shows that the wage gap in Armenia is mostly driven by the wage structure effect (unexplained component), which accounts for almost all the wage gap in the middle part of the distribution (30th to 55th percentiles) and is even greater at the top, but better endowments of women offset it to some extent. In the bottom part of the distribution however, the composition effect is larger, consistent with lower endowments among women, for example, of skills and human capital.


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Short and Long-Run Labor Market Effects of Developing Country Exports : Evidence from Bangladesh
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Year: 2020 Publisher: Washington, D.C. : The World Bank,

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This paper studies how a positive export shock - the sharp increase in garment-sector exports that began at the end of the Multifibre Arrangement (MFA) - spread through Bangladesh's labor markets. Although the end of the MFA was arguably exogenous to Bangladesh, the authors instrument export demand with OECD imports to ensure identification. The paper compares estimates of the local labor market effects (wages and informality) and estimates from wage equations that reflect the predictions from long-run, general-equilibrium neoclassical trade theory. As in other studies, this paper finds that the export shock was localized both in terms of sector and geography. Wages increased and informality decreased in sub-districts more exposed to the export shock. Unlike in other studies, these local labor market effects dissipate quickly. Furthermore, Bangladesh's export shock was sector specific, limited predominantly to the female-intensive garment and textile sector. The paper shows that, following the increase in exports of the female-intensive good, the male-female wage gap closes considerably throughout the country - not just in the apparel sector. In relatively small Bangladesh, the national labor market seems to be more integrated compared to larger countries studied, possibly suggesting that labor adjustment costs are lower in smaller countries.


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Tax-Transfers Schemes, Informality, and Search Frictions in a Small Open Economy
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Year: 2018 Publisher: Washington, D.C. : The World Bank,

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This paper evaluates the impact of market-oriented structural reforms, in particular labor market policies, social assistance programs, and trade liberalization on long run unemployment, wage inequality, and the distribution of employment across sectors in a small open economy with search frictions and idiosyncratic productivity shocks. The paper builds a search and matching model of a labor market with a large informal sector and estimates the model using Colombian household-level data. Changes in labor taxes may have sizable aggregate, compositional, and distributional effects if workers associate high payroll taxes with more valuable and efficient social security services. The higher is the valuation of the services, the higher is the reduction in the log-wage gap. An expansion of public health insurance to informal sector workers has minor aggregate and distributional effects. Changes in relative prices that negatively affect the relative profitability of the formal sector have quite sizable aggregate effects, producing more long-run unemployment and informality, and increasing unemployment duration.


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Connecting the Unobserved Dots : A Decomposition Analysis of Changes in Earnings Inequality in Urban Argentina, 1980-2002
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Year: 2008 Publisher: Washington, D.C., The World Bank,

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There are several possible explanations for the observed changes in inequality, the returns to education, and the gap between the wages of informal and formal salaried workers in Argentina over the period 1980-2002. Largely due to the lack of evidence for competing explanations, skill-biased technical change is the most likely explanation for the increases in the returns to education that occurred in the 1990s. Using a semi-parametric re-weighting variance decomposition technique and data from the Permanent Household Survey, the authors show that during the same period there was an increase in the returns to unobserved skill. This finding lends support to the hypothesis that skill-biased technical change has been a main driver of increases in inequality in Argentina. The pattern of changes suggests that the growth in returns to unobserved skill may have been partly responsible for the relative deterioration of informal salaried wages during the 1990s.


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Bite Back : People Taking On Corporate Food and Winning
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ISBN: 0520964055 Year: 2020 Publisher: Berkeley, CA : University of California Press,

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The food system is broken, but there is a revolution underway to fix it. Bite Back presents an urgent call to action and a vision for disrupting corporate power in the food system, a vision shared with countless organizers and advocates worldwide. In this provocative and inspiring new book, editors Saru Jayaraman and Kathryn De Master bring together leading experts and activists who are challenging corporate power by addressing injustices in our food system, from wage inequality to environmental destruction to corporate bullying.In paired chapters, authors present a problem arising from corporate control of the food system and then recount how an organizing campaign successfully tackled it. This unique solutions-oriented book allows readers to explore the core contemporary challenges embedded in our food system and learn how we can push back against corporate greed to benefit workers and consumers everywhere.


Book
Connecting the Unobserved Dots : A Decomposition Analysis of Changes in Earnings Inequality in Urban Argentina, 1980-2002
Authors: ---
Year: 2008 Publisher: Washington, D.C., The World Bank,

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Abstract

There are several possible explanations for the observed changes in inequality, the returns to education, and the gap between the wages of informal and formal salaried workers in Argentina over the period 1980-2002. Largely due to the lack of evidence for competing explanations, skill-biased technical change is the most likely explanation for the increases in the returns to education that occurred in the 1990s. Using a semi-parametric re-weighting variance decomposition technique and data from the Permanent Household Survey, the authors show that during the same period there was an increase in the returns to unobserved skill. This finding lends support to the hypothesis that skill-biased technical change has been a main driver of increases in inequality in Argentina. The pattern of changes suggests that the growth in returns to unobserved skill may have been partly responsible for the relative deterioration of informal salaried wages during the 1990s.


Book
The Economics of Inequality
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ISBN: 0674915585 0674915569 9780674915565 9780674504806 0674504801 Year: 2015 Publisher: Cambridge, MA : Harvard University Press,

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"Thomas Piketty wrote The Economics of Inequality as an introduction to the conceptual and factual background necessary for interpreting changes in economic inequality over time. Piketty begins by explaining how inequality evolves and how economists measure it. In subsequent chapters, he explores variances in income and ownership of capital and the variety of policies used to reduce these gaps. Along the way, with characteristic clarity and precision, he introduces key ideas about the relationship between labor and capital, the effects of different systems of taxation, the distinction between 'historical' and 'political' time, the impact of education and technological change, the nature of capital markets, the role of unions, and apparent tensions between the pursuit of efficiency and the pursuit of fairness"--Provided by publisher.

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