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Economic geography and wages in Brazil: Evidence from micro-data

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  • Fally, Thibault
  • Paillacar, Rodrigo
  • Terra, Cristina

Abstract

This paper estimates the impact of market and supplier access on wage disparities across Brazilian states, incorporating the control for individual characteristics into the new economic geography methodology. We estimate market and supplier access disaggregated by industry, and we compute access to local, national and international markets separately. We find a strong correlation between market access and wage differentials, even after controlling for individual characteristics, market access level (international, national or local), and using instrumental variables.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 91 (2010)
Issue (Month): 1 (January)
Pages: 155-168

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Handle: RePEc:eee:deveco:v:91:y:2010:i:1:p:155-168

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Web page: http://www.elsevier.com/locate/devec

Related research

Keywords: Economic geography Market potential Regional disparities Brazil Wage equation;

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References

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