Effects of Demographic and Educational Changes on the Labor Markets of Brazil and Mexico

• In Event: 539 - Section on Labor and Labor Movements Roundtables (one-hour)
  In Refereed Roundtable: Section on Labor and Labor Movements Roundtables (one-hour). Table 01. Firm Strategies and Worker Outcomes, Beyond the United States

Abstract

This paper estimates the impact of demographic and educational changes on the earnings and returns to schooling of workers in Brazil and Mexico. Our analysis takes into account demographic, educational and economic variations within each country over time, using Censuses microdata from Brazil and Mexico. Results suggest that demographic and educational transitions generate impact on earnings and on returns to education. The proportion of people in age-education groups tends to have a negative impact on earnings. These impacts are more detrimental among age-education groups with higher education, but they are having less of a negative effect over time. We also find that the effects of the concentration of skilled labor are greater than those observed in more developed countries. In the United States, the effects of concentration are observed only for those with higher level of education. In Brazil and Mexico, these effects are observed throughout the income distribution.

Authors

• Ernesto F. L. Amaral, RAND Corporation

• Bernardo L. Queiroz, Federal University of Minas Gerais

• Júlia A. Calazans, Federal University of Minas Gerais