Global Journal of Human Social Science, E: Economics, Volume 23 Issue 3

theoretical and empiric literature about the theme and the following part describes the data and also explains the methodology. The fourth part is about polarization of employment on Brazilian labor market and the fifth discusses the behavior of wage distribution, especially regarding the dynamic of wage differentials among occupations. Lastly, the main evidences are shown on final considerations. II. L iterature R eview In economics literature, differences in occupational structure have been discussed since Adam Smith on his book An Inquiry Into the Nature and Causes of the Wealth of Nations (in Portuguese A riqueza das nações ), published in 1776. According to the author, differences in payment on labor market based on the occupation were due to working conditions, learning costs, stability, reliability degree and success probability; he also addressed the importance of public politics back then and the balance between offer and demand on labor market (SMITH, 1995). Distribution in income would not be arbitrary and defined by an accidental historical process but dependent from distribution of workers in different occupations available in the community while considering specific distributions of skill and prices (ROY, 1951). On the other hand, increase in inequality of income distribution during past decades, especially in advanced economies, has motivated investigations about changes in the structure of labor market. An explanation for it would be the hypothesis of technological changes and qualified work approach, since technology replaces non-qualified workers but it is complementary to the skilled ones, relatively increasing the demand and returns from these workers (Bound & Johnson, 1992). Also, there would be a polarization on labor market, changing working skills demands and increasing the number of jobs in occupations that require more or less qualification and reducing the ones related to routine tasks (Autor, Levy & Murnane, 2003). Therefore, the job polarization occurs with a decline in the share of routine tasks and growth in abstract and manual tasks (Acemoglu & Autor, 2011; Goos, Manning & Salomons, 2014). The increase of demand for more qualified workers and higher wages for them (skills return) were observed in the United States and other industrialized countries, despite increase of qualified job offers (Autor, 2014). According to the author, computers are present in many activities and, when a task is not replaced, it can still be completed by them. Thus, Böhm (2020) verified that returns from occupations related to activities considered routine on North American labor market during the years 1990 and 2000 declined when compared to abstract and manual tasks. On the other hand, Cerina, Moro and Rendall (2017) carried out a study about labor market in the United States between 1980 and 2008, observing the gender role in employment changes and highlighting higher polarization in activities occupied by women, who broadened their participation in positions which demanded high and low levels of ability. In case of Europe, the authors Goos, Manning and Salomons (2014) conducted a research considering labor market in sixteen countries from 1993 to 2010. Results showed persistency in polarization on the analyzed area, suggesting increasing parcels of employment of professionals with higher income and managers as well as those with lower returns who do personal jobs. On the other hand, they also verified decreasing parcels of employment of professionals who work in manufacturing and perform routine tasks at offices. According to Coelli and Borland (2015), the growth in the number of occupations with higher qualification from 1966 to 2011 has contributed to increase inequality of income in Australia, changing both the composition and the average income of occupations. In Argentina, according to Goméz (2020), it was observed reduction in premium wages depending on educational levels and occupational groups, however, with higher wages from 2004 to 2014. Regarding gender, premiums are still higher for men. Among factors that explain these changes are higher formalization of labor market, minimum wage, collective negotiations and more offers of qualified workers. In Brazil, during the last decades there were evidences which pointed a decrease in job numbers for occupations that require lower qualification (FLORI, 2007; COMIN, 2015). From the beginning of the 1080s to the beginning of the 2000s, it was observed an elevation in demand for occupations considered non- routine and that require more technological resources, it was also noticed reduction in inequality among occupations but increase of inequality inside jobs identified as belonging to high technology layer (BRESSAN; HERMETO, 2009). Associated to the increase in more qualified job offers, there were evidences of increase of relative demand for more qualified work during past decades, from 1081 to 2015 (HERDEIRO et al., 2019). However, the biggest parcel of workers is less qualified, underpaid, inserted in service sector and other routine manual occupations with high level of competition and precarious work (MAIA et al., 2019). In this context, incorporation of new technologies can negatively impact employment generation on Brazilian labor market when reaching occupations that are still important for employment composition (KUBOTA; MACIENTE, 2019). Besides, despite advances, women during the beginning of the 2000s still stood out in manual and little © 2023 Global Journals Volume XXIII Issue III Version I 12 Global Journal of Human Social Science - Year 2023 ( )E Occupational Polarization in Brazilian Labor Market, 1985-2015