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The Dynamics of the Skill-premium in Brazil:Growing Demand and Insufficient Supply?

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This paper uses the framework of Katz and Murphy (1992) and Murphy, Riddell and Romer (1998), to explain the evolution of returns to labor skills in terms of specific supply and demand changes during the last two decades ?micro-data based. Our findings suggest that the substantial but asymmetric expansion of the education system in Brazil -with weaker growth of tertiary education- combined with a steady skill-biased change in labor demand explains the increasing skill premium.

Last updated: 04/26/07