For a long time, economists believed that inequality in the labor market could be explained fundamentally by differences in skills. Workers who were highly educated, experienced and skilled tended to be rewarded better by the labor market than workers who weren't. Firms were essentially irrelevant in this paradigm. Workers were rewarded for their productivity: It didn't matter … [Read more...] about Did Changes Among Firms Reduce Wage Inequality in Latin America?
As Joana Silva and I document in a recent book, earnings inequality declined in 16 of the 17 countries in Latin America for which consistent statistics can be calculated, although the intensity and turning points diverged across countries. For example, after a decade of stagnant or slowly increasing inequality, the 90th/10th interquantile range of the labor earnings … [Read more...] about Did Education and Job Experience Reduce Inequality in Latin America?
In science fiction films, artificial intelligence and robots are the bogeymen of the future, replacing us and rendering us useless as they impose their mechanical will upon us. Economists, though less apocalyptic, are sounding alarms too. In a study, economist Carl Benedikt Frey and machine learning expert Michael Osborne examine more than 700 occupations in the United States. … [Read more...] about Will Robots Really Harm Employment?
Many policymakers say minimum wage hikes are crucial to reducing inequality. They look at Latin America and see abundant evidence, including the fact that in various countries large minimum wage increases during the commodity boom of the 2000s coincided with large inequality declines. There is certainly some truth to the idea. Minimum wage increases during times of strong … [Read more...] about Minimum Wages and the Fight Against Inequality
Over the last 25 years, Latin America and the Caribbean has boosted efforts in primary education to the point that it is nearly universal, with three out of four students finishing primary school on time. But educational quality for very young children in the region still lags far behind that of developed countries. It even trails countries of similar levels of development in … [Read more...] about It’s Time to Improve Primary Education: This Is How