Education and Labor Market Outcomes in Brazil Naércio Aquino Menezes-Filho University of São Paulo IDB Annual Meeting – Milan 2003

Figure 1 – Wage Inequality in Brazil

Figure 2 – Education and Wage Inequality

Figure 3 – The Evolution of Education

Figure 4 – Average Returns to Education

Figure 5 – Education Composition Effect

Figure 6 – Relative Wage Differentials

Figure 7 – Relative Supply of Education

Demand for Skill : 3 Skill Groups Aggregate output Labor Aggregate 1 Simple tasks Labor Aggregate 2 Complex tasks = supply of semi-skilled workers performing simple tasks = supply of semi-skilled workers performing Complex tasks

Demand for Skill: 3 Skill Groups From the F.OC.:

Figure 8: D 32 (t) – Elasticity = 1,5

Figure 9: D 12 (t) – Elasticity = 1,5

Figure 10 – Relative Unemployment Rate

Figure 11 – Labor Market Transitions by Education

Figure 12 – Costs of Displacement

Figure 13 – Recent Evolution of Education

Conclusions Any Employment Policy has to take into Account The Supply and Demand for Different Education Groups Problems seem to be Higher for the Intermediate Education Groups