Figure 3
Actual and counterfactual 90/50 and 50/10 overall wage inequality, Quadros de Pessoal 1984-2009. The series labeled "Observed ratio" present the actual log difference between the percentiles in the data. The series labeled "Year: f(w|skills)" correspond to the log difference of the percentiles of a reweighted (counterfactual) distribution of year "Year" where the weights are proportional to the distribution of skills (age, schooling, and interactions) in each year, depicted in the x-axis and the distribution of skills in year "Year". See the Appendix for additional details.