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The Effect of Macroeconomic Turbulence on Real Wage Levels and the Wage Structure: Brazil, 1981–1999*

How does a turbulent macroeconomic environment affect real wage levels and the wage structure? A method for addressing this question is offered and then applied to data for Brazil between 1981 and 1999. Cohorts of workers are followed over time to determine whether movements in median wages are associated with age or with calendar year events. Changes in the wage structure-by gender, by schooling, and by formal-informal sector-are investigated. Profound macroeconomic impacts on real wage levels are clearly identified but effects on the wage structure are far less.