NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Working Papers by Eduardo L.G. Rios-Neto

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Working Papers

October 2007Demographic Change and the Structure of Wages: A Demand-Theoretic Analysis for Brazil
with Ernesto F. L. Amaral, Daniel S. Hamermesh, Joseph E. Potter: w13533

Published: Demographic Research, Volume 28 - Article 20 | Pages 581-612

With rapidly declining fertility and increased longevity the age structure of the labor force in developing countries has changed rapidly. Changing relative supply of workers by age group, and by educational attainment, can have profound effects on labor costs. Their impacts on earnings have been heavily studied in the United States but have received little attention in Asia and Latin America, where supply shocks are at least as large and have often proceeded less evenly across the economy. We use data on 502 local Brazilian labor markets from Censuses 1970-2000 to examine the extent of substitution among demographic groups as relative supply has changed. The results suggest that age-education groups are imperfect substitutes, so that larger age-education cohorts see depressed wage rates...

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