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Challenges in the Brazilian labor market: Pre- and post-pandemic wage gaps

Year: 2025

Type: article

Abstract: This study analyzes the impact of the COVID-19 pandemic on the occupations and wages of formal and informal workers in Brazil, focusing on social inequalities. It uses data from the PNADC for the first quarter of 2019 and 2022. Wage determinants were estimated using the Mincer equation and the Tobit model with Difference in Differences. The results indicate an increase in informality, wage penalties for women, non-white individuals, and workers with low education. The pandemic reduced the incomes of all groups, with a greater decline among formal workers, highlighting structural inequalities and barriers to social mobility.

Source: Finance research letters

DOI: 10.1016/j.frl.2025.108028

Authors: Magno Rogerio Gomes, Solange Cassia Inforzato de Souza, Paulo Jorge Reis Mourão

Institutions: Universidade Estadual do Paraná, University of Minho

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities, No poverty

Open Access status: hybrid

Estimated APC paid: $3,730