**Table 3: Decomposition Results. Changes in Average Earnings.**

||2012-1995<br>|2003-1995|2012-2003|
|---|---|---|---|
||**Overall**<br>|||
|Post|6.48<sup>**</sup>|6.10<sup>**</sup>|6.48<sup>**</sup>|
||[0.002]|[0.002]|[0.002]|
|Pre|6.23<sup>**</sup>|6.23<sup>**</sup>|6.10<sup>**</sup>|
||[0.002]|[0.002]|[0.002]|
|Difference|0.26<sup>**</sup>|-0.12<sup>**</sup>|0.38<sup>**</sup>|
||[0.003]|[0.003]|[0.002]|
|Endowments|0.12<sup>**</sup>|0|0.12<sup>**</sup>|
||[0.002]<br>|[0.002]<br>|[0.002]<br>|
|Structure|0.13<sup>**</sup><br>[0.002]|-0.13<sup>**</sup><br>[0.002]|0.26<sup>**</sup><br>[0.002]|
||**Endowments**|||
|Education|0.18<sup>**</sup>|0.08<sup>**</sup>|0.10<sup>**</sup>|
||[0.001]|[0.001]|[0.001]|
|Potential Experience|-0.02<sup>**</sup>|-0.01<sup>**</sup>|-0.00<sup>**</sup>|
||[0.000]|[0.001]|[0.000]|
|Minimum Wage|<br>-0.04<sup>**</sup>|<br>-0.06<sup>**</sup>|<br>0.02<sup>**</sup>|
||[0.001]<br>|[0.001]<br>|[0.001]<br>|
|Formality Status|-0.00<sup>**</sup>|-0.00<sup>**</sup>|0.00<sup>**</sup>|
||[0.000]|[0.000]|[0.000]|
|Race and Gender|-0.02<sup>**</sup>|-0.01<sup>**</sup>|-0.01<sup>**</sup>|
||[0.000]|[0.000]|[0.000]|
|Region and Urban|<br>0.01<sup>**</sup>|<br>0.00<sup>**</sup>|<br>0.00<sup>**</sup>|
||[0.000]|[0.000]|[0.000]|
|Economic Sector|<br>0.01<sup>**</sup>|<br>0.01<sup>**</sup>|<br>0.01<sup>**</sup>|
||[0.000]|[0.000]|[0.000]|
||**Structure**|||
|Education|-0.26<sup>**</sup>|-0.11<sup>**</sup>|-0.16<sup>**</sup>|
||[0.006]|[0.006]|[0.006]|
|Potential Experience|-0.27<sup>**</sup>|-0.07<sup>**</sup>|-0.19<sup>**</sup>|
||[0.010]|[0.012]|[0.008]|
|Minimum Wage|<br>0.01<sup>**</sup>|<br>-0.00<sup>*</sup>|<br>0.02<sup>**</sup>|
||[0.001]|[0.001]|[0.001]|
|Formality Status|0.03<sup>**</sup>|-0.01<sup>**</sup>|0.04<sup>**</sup>|
||[0.002]|[0.002]|[0.002]|
|Race and Gender|<br>0.06<sup>**</sup>|<br>0.04<sup>**</sup>|<br>0.02<sup>**</sup>|
||[0.003]<br>|[0.003]<br>|[0.003]<br>|
|Region and Urban|-0.04<sup>**</sup>|-0.02<sup>**</sup>|-0.02<sup>**</sup>|
||[0.005]|[0.005]|[0.004]|
|Economic Sector|0.16<sup>**</sup>|0.13<sup>**</sup><br>|0.04<sup>*</sup>|
||[0.015]|[0.016]|[0.014]|
|Constant|0.44<sup>**</sup><br>|-0.07<sup>**</sup><br>|0.51<sup>**</sup><br>|
||[0.021]|[0.022]|[0.019]|
||**Total**|||
|Education|-0.08<sup>**</sup>|-0.03<sup>**</sup>|-0.06<sup>**</sup>|
||[0006]|[0006]|[0006]|
|Potential Experience|.<br>-0.28<sup>**</sup>|.<br>-0.09<sup>**</sup>|.<br>-0.20<sup>**</sup>|
||[0.011]|[0.012]|[0.008]|
|Minimum Wage|-0.03<sup>**</sup>|-0.06<sup>**</sup>|0.04<sup>**</sup>|
||[0.001]|[0.001]|[0.001]|
|Formality Status|<br>0.02<sup>**</sup><br>|<br>-0.02<sup>**</sup><br>|<br>0.04<sup>**</sup><br>|
||[0.002]|[0.002]|[0.002]|
|Race and Gender|<br>0.04<sup>**</sup>|<br>0.03<sup>**</sup>|<br>0.01<sup>**</sup>|
||[0.003]<br>|[0.003]<br>|[0.003]<br>|
|Region and Urban|-0.03<sup>**</sup>|-0.02<sup>**</sup>|-0.02<sup>**</sup>|
||[0.005]|[0.005]|[0.004]|
|Economic Sector|0.18<sup>**</sup><br>|0.14<sup>**</sup><br>|0.04<sup>**</sup><br>|
||[0.015]|[0.016]|[0.014]|
|N|484,054|477,775|533,827|

Note: Robust Standard Errors in Brackets. **, * and + denote statistical significance at the 1%, 5% and 10% levels, respectively. Standard errors are calculated using the delta method. Each category summarizes the contribution of the sum of individual effects. Education and experience refer to quartic polynomials in education and experience, respectively, in the underlying regressions. Minimum wage refers to a dummy variable that takes value one for individuals below minimum wage. Formality status summarizes the contribution of two dummies: informal employee and self-employed. Race and gender capture the interactions between a gender and race dummies (‘mestiço’ and Afro-Brazilian, white and others). Region and urban includes the interactions between an indicator variable of living in an urban area and region (northeast, north, southeast, south and center-west). Economic sector adds 17 dummies for economic sector. Omitted categories in the underlying regressions are: above minimum wage, formal employees, center-west, white, male, urban and financial services.

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