Effects of economic liberalization on regional social mobility in Brazil

Social mobility is essential to reducing inequalities, promoting equity, and fostering economic development. This study analyzes the effect of economic liberalization on social mobility in micro-regions of Brazil. To measure regional exposure to openness, the methodology of Dix-Carneiro is applied. Social mobility is approximated from a variable constructed from census data from 1980, 1991, 2000, and 2010, which relates the educational attainment of parents and children. Results indicate that between 1991 and 2000, liberalization reduced social mobility in more exposed regions, and this effect worsened twenty years later. The impact was greater for children of parents with low education, black parents, and single mothers. In addition, liberalization reduced formal employment and wages and increased informal employment.