Informality, Population Aging, Educational Attainment, and Earnings in Brazil

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Abstract

This paper estimates the association of informality, demographic, and educational changes with earnings of male workers in Brazil. Our analysis takes into account informality, demographic, educational, and economic regional variations over time, using Demographic Censuses microdata. Results suggest that informality, demographic, and educational transitions are correlated with earnings. Proportions of people in age-education-informality groups tend to have negative associations with aggregated earnings. Workers with secondary education completed experience negative effects on their earnings by having lower education than university graduates (education effect) and by representing a bigger share of the population than males with university education completed (cohort size effect). These effects depress earnings more in the formal than in the informal sector. These negative correlations have been decreasing in magnitude over time.

Authors

• Ernesto F. L. Amaral, RAND Corporation

• Bernardo L. Queiroz, Universidade Federal de Minas Gerais (UFMG), Brazil

• Guilherme Q. Gonçalves, Universidade Federal de Minas Gerais (UFMG), Brazil

• Samantha H. R. Faustino, Universidade Federal de Minas Gerais (UFMG), Brazil