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Determining factors of relative wages: an empirical study with primary data for the metropolitan region of Recife

Author

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  • Alexandre Rands Barros
  • Maurício Rands Barros

Abstract

This paper forwards some hypotheses on wage determination and relies on a survey with 210 questionnaires applied to workers in Recife to test them empirically. The major conclusions are: (i) Human capital is an important factor determining real wages and the domestic environment is crucial for its accumulation; (ii) workers bargaining strength, as measured by the union model, as well as size and ownership of the company, are also relevant factors determining the real wages; (iii) unions affiliation to Central Única dos Trabalhadores raises wages; (iv) age is a relevant variable to determine wages, but only in the set which includes state owned enterprises; (v) the number of dependents is also relevant to determine relative wages; and (vi) wages for women are lower than for men. JEL Classification: J3; J24.

Suggested Citation

  • Alexandre Rands Barros & Maurício Rands Barros, 1998. "Determining factors of relative wages: an empirical study with primary data for the metropolitan region of Recife," Brazilian Journal of Political Economy, Center of Political Economy, vol. 18(1), pages 194-208.
    • Handle: RePEc:ekm:repojs:v:18:y:1998:i:1:p:194-208:id:1130
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    More about this item

    Keywords

    Wage differentials; wage inequality; human capital;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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