THE DYNAMIC OF EMPLOYMENT AND LABOR INCOME INEQUALITIES IN THE INDUSTRIAL SECTORS OF RS FROM 1996 TO 2005

Abstract

This article analyses the changes that occurred from 1996 to 2005 in the distributions of the wages among the workers in different industrial sectors in the state of Rio Grande do Sul. The inequalities in the distributions were expressed through Gini indices. Statistical regressions were used to identify the variables responsible for the changes in these inequalities. The results show that from 1996 to 2005 occurred a reduction in the inequality of the industrial salary’s income distribution in Rio Grande do Sul. But this reduction in the income inequality is due to a decrease in the average salary received by the workers and a great rise in the proportion of workers occupying positions with lower salaries. During this period the number of the State industrial workers increased at a lower rate than the value of its output, meaning that labor productivity raised. In the same period the educational level of the workers increased. Thus, the State industrial workers accumulated human capital, increased their productivity, but their wages declined.